Data provider Thomson Reuters is to offer its customers access to trade monitoring firm Redkite’s surveillance solution as a managed service within the Elektron network and hosting environment. The Redkite solution, Redeye, is also available as deployed software within a client's business.
As the industry's first trade surveillance solution available through Elektron, users of Redeye will have access to a fully-managed, integrated solution powered by Thomson Reuters real-time pricing, news and tick history data. Redeye monitors trades, orders, market data and news events in real-time or at the end of the business day. It analyses these sources and generates alerts identifying suspicious transactions or activity that suggests possible market abuse or manipulation.
Elektron allows firms to tap into 350+ exchange and OTC markets and thousands financial institutions globally.
In addition to Redeye, financial services firms can use Elektron Hosting to co-locate trading applications and market connectivity in a fully managed, low-latency environment. The service lets financial institutions quickly integrate, test and use new surveillance strategies according to changing market requirements.
A recent survey by research firm TABB Group indicates that spending on surveillance is set to make up 28% of spending on external IT solutions by sell side firms in 2011. The 'flash crash' on 6 May, in which an algorithm without price or time constraints deployed by an asset manager had a sizeable and damaging market impact, has increased concern around trade monitoring among buy-side firms.
Mike Powell, global head of enterprise real time solutions at Thomson Reuters, said, “Globally, we are seeing increased demand for improved surveillance products and processes in the face of imminent market structure changes. The combination of Thomson Reuters Elektron and Redeye will provide a high performance solution to support customers' trading workflow and better enable them to meet new regulatory requirements.”
Justin Amos, co-founder and CEO at Redkite Financial Markets, added, “Working with Thomson Reuters will ensure that Redeye users will have access to the most comprehensive global cross asset content from the leading market data and infrastructure provider, with comprehensive, dedicated hosting and application support afforded by Elektron’s global footprint.”