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Reuters Launches Counterparty Service, Ties with Complinet

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A month or two later than originally planned Reuters has taken the wraps off its counterparty data service, launching Reuters DataScope for Counterparty and Compliance and trumpeting a pre-launch customer signing and advanced talks with a number of other potential clients. The vendor has also unveiled its specialist partner for embedded sanctions lists as Complinet.

Reuters has been developing its counterparty offering for some time (Reference Data Review, August, September and November 2006), in partnership with Credit Dimensions – the previous employer of the now head of regulatory compliance data at Reuters Enterprise Solutions Jonathan Hodgson. According to Hodgson, Credit Dimensions continues to source and maintain counterparty data on Reuters’ behalf in a number of countries.

“We also have new dedicated teams in Gdansk and Beijing, sourcing and maintaining data for a series of East European and Asian countries,” he says. Currently, the Reuters service covers entities in 159 countries. “Within the application there is a ‘request coverage’ function, via which users can request that we gather information on certain entities, so the number of entities covered is going up all the time,” he adds.

Reuters is now working through a development roadmap for the service. A document library – an integrated repository for access to the underlying copies of source documents – will come online this year, Hodgson says. “We are also looking at extending coverage to directors and other senior officers,” he adds. “We are talking to clients about the directions in which they think we should be taking the service.”

The embedded sanctions list component, provided in partnership with international compliance and regulatory products provider Complinet, will prove to be a competitive differentiator for the Reuters service, Hodgson believes. “On a daily basis, we will match every entity we carry in the service against 78 enforcement lists, 16 different sanctions lists and 22 legal enforcement lists,” he says. “Users will be able to go from within the detail of every entry, drilling down and clicking on a link giving the status of the match result – low, medium or high. Clicking on the link will take them to a secure web site containing extracts of all the lists, giving full details of the enforcement.”

The increasing weight of the regulatory burden on the industry is certainly driving demand for counterparty data. Hodgson reports “a lot of interest in the service” so far. “We are carrying out a lot of demos. We are in reasonably advanced talks with a number of potential clients, and we have one client signed already pre-launch. The reaction has been very positive – and it is coming from different areas within firms, including compliance, front office and risk management: counterparty data applies across the organisation.”

Reuters does not have a clear run at the market for counterparty data services, however, and nor is it entering the game particularly early. In addition to its partner Credit Dimensions, other incumbent service providers making seemingly steady progress before Reuters is even properly out of the gate include Deutsche Boerse-owned Avox, with its collaborative model, CounterpartyLink, and Interactive Data, via tie-ups with both the aforementioned.

Indeed, Reuters’ entry into the space has ruffled a few feathers among the existing providers, who see certain similarities between their established approaches and the approach adopted by Reuters. Avox and CounterpartyLink have both recently added to their data to help clients meet the requirements of MiFID, and providing audit trails back to source documents and partnering to bolster linkages to other useful sources of information are strategies being deployed already by Reuters’ competitors in the counterparty data space.

What Reuters does undoubtedly have though is scale, footprint and a formidable sales force – all of which are set to get bigger still through the proposed Thomson/Reuters tie-up – and now that its counterparty data service is up and running, it will surely prove significant competition for smaller players that spotted the opportunity first.
Hodgson also emphasises the value for clients of being able to access the counterparty data via its existing DataScope Select service. “The beauty of DataScope Select – our data extraction and management platform – is that users can access prices, terms and conditions data and entity data from the same platform,” he says. “They can go into the instrument side, put in a ticker or a RIC, and that will bring up information on the entity, and they can then click through to get the detail on the counterparty data. Having everything in one place is clearly an advantage.”A month or two later than originally planned Reuters has taken the wraps off its counterparty data service, launching Reuters DataScope for Counterparty and Compliance and trumpeting a pre-launch customer signing and advanced talks with a number of other potential clients. The vendor has also unveiled its specialist partner for embedded sanctions lists as Complinet.

Reuters has been developing its counterparty offering for some time (Reference Data Review, August, September and November 2006), in partnership with Credit Dimensions – the previous employer of the now head of regulatory compliance data at Reuters Enterprise Solutions Jonathan Hodgson. According to Hodgson, Credit Dimensions continues to source and maintain counterparty data on Reuters’ behalf in a number of countries.

“We also have new dedicated teams in Gdansk and Beijing, sourcing and maintaining data for a series of East European and Asian countries,” he says. Currently, the Reuters service covers entities in 159 countries. “Within the application there is a ‘request coverage’ function, via which users can request that we gather information on certain entities, so the number of entities covered is going up all the time,” he adds.

Reuters is now working through a development roadmap for the service. A document library – an integrated repository for access to the underlying copies of source documents – will come online this year, Hodgson says. “We are also looking at extending coverage to directors and other senior officers,” he adds. “We are talking to clients about the directions in which they think we should be taking the service.”

The embedded sanctions list component, provided in partnership with international compliance and regulatory products provider Complinet, will prove to be a competitive differentiator for the Reuters service, Hodgson believes. “On a daily basis, we will match every entity we carry in the service against 78 enforcement lists, 16 different sanctions lists and 22 legal enforcement lists,” he says. “Users will be able to go from within the detail of every entry, drilling down and clicking on a link giving the status of the match result – low, medium or high. Clicking on the link will take them to a secure web site containing extracts of all the lists, giving full details of the enforcement.”

The increasing weight of the regulatory burden on the industry is certainly driving demand for counterparty data. Hodgson reports “a lot of interest in the service” so far. “We are carrying out a lot of demos. We are in reasonably advanced talks with a number of potential clients, and we have one client signed already pre-launch. The reaction has been very positive – and it is coming from different areas within firms, including compliance, front office and risk management: counterparty data applies across the organisation.”

Reuters does not have a clear run at the market for counterparty data services, however, and nor is it entering the game particularly early. In addition to its partner Credit Dimensions, other incumbent service providers making seemingly steady progress before Reuters is even properly out of the gate include Deutsche Boerse-owned Avox, with its collaborative model, CounterpartyLink, and Interactive Data, via tie-ups with both the aforementioned.

Indeed, Reuters’ entry into the space has ruffled a few feathers among the existing providers, who see certain similarities between their established approaches and the approach adopted by Reuters. Avox and CounterpartyLink have both recently added to their data to help clients meet the requirements of MiFID, and providing audit trails back to source documents and partnering to bolster linkages to other useful sources of information are strategies being deployed already by Reuters’ competitors in the counterparty data space.

What Reuters does undoubtedly have though is scale, footprint and a formidable sales force – all of which are set to get bigger still through the proposed Thomson/Reuters tie-up – and now that its counterparty data service is up and running, it will surely prove significant competition for smaller players that spotted the opportunity first.
Hodgson also emphasises the value for clients of being able to access the counterparty data via its existing DataScope Select service. “The beauty of DataScope Select – our data extraction and management platform – is that users can access prices, terms and conditions data and entity data from the same platform,” he says. “They can go into the instrument side, put in a ticker or a RIC, and that will bring up information on the entity, and they can then click through to get the detail on the counterparty data. Having everything in one place is clearly an advantage.”A month or two later than originally planned Reuters has taken the wraps off its counterparty data service, launching Reuters DataScope for Counterparty and Compliance and trumpeting a pre-launch customer signing and advanced talks with a number of other potential clients. The vendor has also unveiled its specialist partner for embedded sanctions lists as Complinet.

Reuters has been developing its counterparty offering for some time (Reference Data Review, August, September and November 2006), in partnership with Credit Dimensions – the previous employer of the now head of regulatory compliance data at Reuters Enterprise Solutions Jonathan Hodgson. According to Hodgson, Credit Dimensions continues to source and maintain counterparty data on Reuters’ behalf in a number of countries.

“We also have new dedicated teams in Gdansk and Beijing, sourcing and maintaining data for a series of East European and Asian countries,” he says. Currently, the Reuters service covers entities in 159 countries. “Within the application there is a ‘request coverage’ function, via which users can request that we gather information on certain entities, so the number of entities covered is going up all the time,” he adds.

Reuters is now working through a development roadmap for the service. A document library – an integrated repository for access to the underlying copies of source documents – will come online this year, Hodgson says. “We are also looking at extending coverage to directors and other senior officers,” he adds. “We are talking to clients about the directions in which they think we should be taking the service.”

The embedded sanctions list component, provided in partnership with international compliance and regulatory products provider Complinet, will prove to be a competitive differentiator for the Reuters service, Hodgson believes. “On a daily basis, we will match every entity we carry in the service against 78 enforcement lists, 16 different sanctions lists and 22 legal enforcement lists,” he says. “Users will be able to go from within the detail of every entry, drilling down and clicking on a link giving the status of the match result – low, medium or high. Clicking on the link will take them to a secure web site containing extracts of all the lists, giving full details of the enforcement.”

The increasing weight of the regulatory burden on the industry is certainly driving demand for counterparty data. Hodgson reports “a lot of interest in the service” so far. “We are carrying out a lot of demos. We are in reasonably advanced talks with a number of potential clients, and we have one client signed already pre-launch. The reaction has been very positive – and it is coming from different areas within firms, including compliance, front office and risk management: counterparty data applies across the organisation.”

Reuters does not have a clear run at the market for counterparty data services, however, and nor is it entering the game particularly early. In addition to its partner Credit Dimensions, other incumbent service providers making seemingly steady progress before Reuters is even properly out of the gate include Deutsche Boerse-owned Avox, with its collaborative model, CounterpartyLink, and Interactive Data, via tie-ups with both the aforementioned.

Indeed, Reuters’ entry into the space has ruffled a few feathers among the existing providers, who see certain similarities between their established approaches and the approach adopted by Reuters. Avox and CounterpartyLink have both recently added to their data to help clients meet the requirements of MiFID, and providing audit trails back to source documents and partnering to bolster linkages to other useful sources of information are strategies being deployed already by Reuters’ competitors in the counterparty data space.

What Reuters does undoubtedly have though is scale, footprint and a formidable sales force – all of which are set to get bigger still through the proposed Thomson/Reuters tie-up – and now that its counterparty data service is up and running, it will surely prove significant competition for smaller players that spotted the opportunity first.
Hodgson also emphasises the value for clients of being able to access the counterparty data via its existing DataScope Select service. “The beauty of DataScope Select – our data extraction and management platform – is that users can access prices, terms and conditions data and entity data from the same platform,” he says. “They can go into the instrument side, put in a ticker or a RIC, and that will bring up information on the entity, and they can then click through to get the detail on the counterparty data. Having everything in one place is clearly an advantage.”

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