Financial data information provider Thomson Reuters has acquired an OTC derivatives analytics software firm as its Tradeweb subsidiary begins pre-trade swaps checks for the buy-side.
Thomson Reuters has announced the acquisition of Pricing Partners, a provider of evaluated pricing to market participants, which will operate as part of the Thomson Reuters Pricing Service (TRPS) solution that supports portfolio, fund and single security valuations.
The acquisition was in part due to Pricing Partners’ presence in Asia and Europe, and will enhance TRPS’ pricing abilities for structured notes, interest-rate, equity, credit, commodities and FX derivatives, as well as hybrid products, adding derivative products valuation, pricing tools and risk analytics to the solution.
“In today’s economic environment, regulatory requirements and continued economic recovery pressures are driving demand for independent and transparent evaluated pricing services that are specialised to offer local market expertise,” said Debra Walton, managing director and head of Enterprise Content at Thomson Reuters.
“The acquisition of Pricing Partners strongly positions Thomson Reuters to meet the changing needs of our European and global client base.”
From Monday, most buy-side firms will begin centrally clearing interest rate and credit default swaps as part of category two implementation of Title VII of the Dodd-Frank Act.
Thomson Reuters-owned fixed income and derivatives marketplace operator Tradeweb last week signalled the first electronic indicative pre-trade credit check between a buy-side client and a futures commission merchant (FCM) had taken place for an OTC derivative transaction. The service lets firms check for credit with their clearing banks using ping- or push-based protocols ahead of executing a swap transaction.
Meanwhile, new London-based listed derivatives exchange Nasdaq OMX NLX will partner with SuperDerivatives to offer transparent settlement pricing for interest rate derivatives. Prices will be based on actual traded prices and order books within the NLX market and OTC markets.