About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Will EC, DoJ Reuters-Thomson Inquiries Strike at the Heart of the Matter: RICs?

Subscribe to our newsletter

The European Commission’s “in-depth investigation into Thomson’s takeover of Reuters” – announced earlier this month – is only to be expected. Whether it will put a dampener on things – by either quashing the deal or insisting on some very visible ‘sacrifice’ by the parties involved – remains to be seen.

Mechanically speaking, the EC investigation – whose announcement coincided with a ‘timing agreement’ with the US Justice Department – involves moving to a so-called Phase 2 review of the proposed transaction, enabling the commission to examine the deal and its impact on the competitive environment. This aspect of the review is expected to be completed in the first quarter of 2008, and will involve the commission working with both Thomson and Reuters “to help narrow and resolve the issues which the EC has indicated require further review”. The EC has until February 28 next year to report on the matter. The Justice Department regulatory review, meanwhile, will conclude by January 15.

As predicted (Market Data Insight, May 2007), the EC’s initial investigation has highlighted concerns in the areas of “the provision of data feeds, the access to specific financial information databases commercialised by the notifying parties, the access to real-time and aftermarket research (broker reports) and the provision of news services’.

Reuters has already indicated that it is willing to make sacrifices to assuage these and any other regulatory concerns. Market practitioners, however, question whether a regulatory missive to spin-off one or more of the overlapping businesses would be any more than just, well, spin. To strike at the heart of monopolistic power, some say, the EC would need to hit Reuters’ secret weapon: the Reuters Instrument Code (RIC).

The complexities of the RIC’s relationship with the marketplace hopefully won’t be lost on EC and DoJ investigators. For its part, Reuters has flirted with the idea of making the RIC more widely available to the marketplace (twice in our memory) only to rein such plans back in pronto. Industry protagonists suggest an ‘open source’ approach to assigning RICs – which would allow third parties to issue codes as necessary – would be a significant step in levelling the market data playing field in the face of an imminent duopoly. But they would, wouldn’t they?

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: The challenges and potential of data marketplaces for financial data

Date: 6 September 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data is the lifeblood of capital markets. It is also a valuable commodity that financial institutions can package and sell by setting up a data marketplace and creating datasets that offer additional market insight to other institutions. While the...

BLOG

MDXT Acquires No-Code SaaS Workflow Solution Provider Iceflow

MDX Technology (MDXT), a provider of data distribution and collaboration technology, has acquired Iceflow Technologies, the no-code SaaS platform vendor founded by Graham Denyer, architect of IHS Markit’s original EDM solution, Cadis Software. Terms weren’t disclosed. MDXT and Iceflow now plan to become fully integrated, giving MDXT customers the ability to utilise the Iceflow no-code...

EVENT

Virtual Briefing: ESG Data Management – A Strategic Imperative (Redirected)

This briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...