Global Financial Services Firms Join New Open Messaging Network

London and New York, NY – Markit, a leading, global financial information services company, today announced the launch of an open messaging network that will enable people in all parts of the global financial services industry to communicate and share information seamlessly.

To date, communication between market participants has been hampered by the lack of system interoperability.The new network removes barriers to industry communication by allowing messaging platforms, critical to price discovery and pre and post trade operations, to connect to each other.

Markit Collaboration Services allows users to see availability, send instant messages, use video and chat rooms, and exchange documents across disparate messaging platforms.Federating messaging platforms makes it cost effective for institutions to offer the benefits of a cross-industry collaboration network to employees throughout their enterprise.The federation service is powered by NextPlane, the market leader in cloud-based unified communications (UC) federation services for collaborative business communities.

The new network also provides the first open directory for the financial services industry, enabling people to find, communicate and collaborate with one another.The messaging and directory services can be embedded in third party applications, workflows and other networks, extending the functionality of trading, processing, research and other applications.

Thomson Reuters is a founding member of the network and will federate its instant messaging tool, Thomson Reuters Eikon Messenger, with the network. Thomson Reuters Eikon Messenger was built using open-based standards to offer a secure, federated messaging system that facilitates collaboration across the financial markets.It already connects to other

messaging platforms such as AOL and Yahoo!. It has a community of over 200,000 financial professionals from more than 170 countries that will be able to communicate across the new network.

BofA Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley have also joined the network and will use the federation and directory services at the enterprise level. These firms employ more than one million people worldwide, all of whom are eligible to use the new network.They will also invite their customers to join the network.

Lance Uggla, chief executive officer of Markit, said: “We’re excited to launch this new collaboration network which is the first of its kind.Our aim is to help financial market participants become more efficient in the way they communicate and share information. By offering them an interoperable collaboration system, we will change how financial markets operate.Having

Thomson Reuters and many of the industry’s major players as part of the network underlines the value of our proposition.”

David Craig, president of Financial & Risk at Thomson Reuters, said: “Thomson Reuters was an innovator in open messaging, launching one of the first instant messaging services specifically designed for financial markets 11 years ago. We are excited to work with Markit and the industry as a founding member of this new open messaging initiative which aims to break down the last barriers to cross-industry communication. This will significantly help the industry and will enable our customers to connect to their clients and counterparties regardless of the messaging tools they are using.”

Perry Vais, cohead of quantitative strategy at BlueMountain Capital Management, said: “We envision using the new network to connect easily with trading desks, prime brokers, research departments and others in the market.With a single point of access to multiple messaging systems, the network helps us work with anyone and minimises the technology required.”

Zar Amrolia, cohead of Fixed Income & Currencies at Deutsche Bank, said: “Deutsche Bank is at the forefront of emerging technologies that drive market efficiencies. This new network allows us to connect disparate systems and improve the quality of communication and therefore service we provide to clients. We welcome any initiative that improves access and communication across markets and with our clients. The service will refine our back office technology footprint, whilst bringing efficiencies to our client facing franchise across the bank.”

Steve Grob, director of group strategy at Fidessa, said: “The use of intelligent messaging within trading applications is a definite direction of travel for the industry. Markit’s initiative means that we can work with those of our customers that are also on Markit’s new network to build intelligent workflow messaging across our buy and sellside trading community.”

Jim Toffey, head of E-Markets at GFI Group, said: “We work with dozens of dealers and today we rely on multiple systems to communicate.The ability to use one platform to reach many customers is extremely valuable.We also need to verify that we are working with authorised representatives at our customers and having access to a single, global directory that is validated by firms on the network is a major advance for our business.”

Heidi Johnson, managing director and head of Collaboration Services at Markit, said: “All participants in the financial markets are invited to join this open network.We believe our technology will transform the way people communicate, access information and connect systems and people.Having a technology-agnostic network will open up exciting new ways to connect systems and people.”

About the network

Markit Collaboration Services is open to any participant in the financial industry, and thousands of buyside firms, banks, exchanges, interdealer brokers and vendors are expected to join the network.

The ability to federate enables firms on the network to optimise the investments they have made in messaging and compliance infrastructure.Federation supports all XMPP and SIP-based

messaging, including Thomson Reuters Eikon Messenger, Microsoft Lync and Cisco Jabber.

Farzin Shahidi, founder and chief executive officer of NextPlane, said: “We believe that organisations should be able to communicate and collaborate seamlessly

with one another in realtime, regardless of their underlying unified communications and messaging platforms. We are pleased to provide the scalable, many-to-many UC federation service which allows the financial services industry to collaborate in realtime.”

The network includes a security and privacy framework that provides participating firms with full ownership of their messaging.Message content is encrypted and is not stored by the network.

The network is supported by the Vantage governance platform by Actiance, the gold standard for active compliance which ensures all interaction on the network adheres to member company policies and FINRA standards.

Steve White, product manager at Actiance, said: “Social tools and industry-focused networks clearly help drive innovation and productivity across broad and often geographically dispersed user groups.We believe the open standard approach taken by Markit, coupled with the necessary compliance capabilities provided through Vantage, will be well received in the financial services industry.”

For more information, please visit:www.markit.com/Product/collaboration-services

For More Information, Please Contact

Alex Paidas

Director, Markit

Tel: +1 212 205 7101

alex.paidas@markit.com

Why Thomson Reuters and Markit could give Bloomberg a run for its money

The privacy scandal that shook Bloomberg in May could be coming back to bite it. Today, Markit and Thomson Reuters formally announced their new messaging system for finance professionals, Market Collaboration Services. It seems designed to compete with the chat function on Bloomberg terminals, to which Bloomberg owes part of its dominance as a data provider. The two companies said today that Bank of America Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase and Morgan Stanley were all on board.

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We’ve written before that Thomson Reuters will have a hard time unseating Bloomberg. But traders, bankers, and other financial services professionals we’ve spoken to over the last few months have raised a number of points that lead us to believe that Thomson Reuters and Markit could be more successful than we thought:

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Concerns about snooping and data privacy really shook bankers up. In May, Bloomberg admitted that its reporters had access to information about its customers’ usage of their Bloomberg terminals, and there were complaints that they were using it to write stories. Though the fury may have faded, the message has not; third-party technology can pose a threat to the secrecy of the firm. The Markit/Thomson Reuters offering was created in close collaboration with banks and is more customizable, so it may enjoy a certain level of trust.

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Not everyone needs a Bloomberg. Bloomberg terminals cost around $20,000 per year, something Wall Street has long seen as a necessary evil. But maybe no longer. “For some big banks, it’s an incredibly expensive instant messaging device,” an executive at one market infrastructure company told the Financial Times (paywall). “They’re saying, ‘we’re spending $120m a year on Bloomberg. That needs to come down’.”

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Sharing is caring… about costs. Major banks have already made the decision that employees can share a terminal in some cases, and used the savings to buy cheaper plans from Thomson Reuters that can be customized to fit an employee’s role. A commodities trader, the thinking goes, doesn’t need all the same tools a banker advising on tech mergers does. By contrast, Bloomberg terminals are one-size-fits-all; if you buy a terminal, you have to take all the features it offers even if you don’t need them.

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This is already happening; one banker who was not authorized to speak on his bank’s behalf said his team had seen its number of Bloomberg terminals cut down to one, replaced by Thomson Reuters Eikon terminals. The team shares the remaining Bloomberg terminal.

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A stand-alone chat function makes a lot of sense. In an email, Thomson Reuters said it “aims to create the largest financial markets messaging community and remove barriers to cross-market communication.” This means installing the messaging service on as many machines as possible, even ones that don’t even receive data feeds. Therefore, employees across the business could have access to the secure chat feature. If fewer bankers have their own Bloomberg terminals, they will need an alternative chat service to communicate with those colleagues that don’t have them.

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Clearly, this isn’t a transition that will happen overnight. But with cost pressures mounting and reception already warm, Markit and Thomson Reuters seem to have a better shot at taking on Bloomberg than you might think.

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Bloomberg declined to comment.

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