Thomson Reuters REDI

Last updated

REDI is Thomson Reuters' EMS (execution management system) platform. Acquired in 2017, Thomson Reuters REDI allows users to access more than 175 execution brokers to route Equities, Futures or Options orders globally, as well as over 20 prime and clearing brokers. [1] According to the company, there are over 5,000 active users of REDI worldwide.

Thomson Reuters company

Thomson Reuters Corporation is a Canadian multinational mass media and information firm. The firm was founded in Toronto, Ontario, Canada, where it is headquartered at 333 Bay Street in Downtown Toronto. Thomson Reuters shares are cross listed on the Toronto Stock Exchange and the New York Stock Exchange.

Execution management systems (EMSs) are software applications utilized by institutional traders designed to display market data and provide seamless and fast access to trading destinations for the purpose of transacting orders. They contain broker provided and independent algorithms, global market data and technology that is able to help predict certain market conditions. One of the important features of EMSs is that it can manage orders across multiple trading destinations such as stock exchanges, stock brokerage firms, crossing networks and electronic communication networks.

Futures exchange central financial exchange where people can trade standardized futures contracts

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. The opposite of the futures market is the spots market, where trades will occur immediately after a transaction agreement has been made, rather than at a predetermined time in the future. Futures instruments are priced according to the movement of the underlying asset. The aforementioned category is named "derivatives" because the value of these instruments are derived from another asset class.

Contents

Early history

REDI is one of the most enduring brands in the electronic trading space, tracing its roots to 1992 when it was launched by market maker and New York Stock Exchange (NYSE) specialist Spear, Leeds & Kellogg. The platform, which stood for “Rapid Execution Dot Interface,” was one of the industry’s first electronic order entry systems.

Electronic or scripless trading, sometimes called e-trading or paperless trading is a method of trading securities, foreign exchange or financial derivatives electronically. Information technology is used to bring together buyers and sellers through an electronic trading platform and network to create virtual market places. They can include various exchange-based systems, such as NASDAQ, NYSE Arca and Globex, as well as other types of trading platforms, such as electronic communication networks (ECNs), alternative trading systems, crossing networks and "dark pools". Electronic trading is rapidly replacing human trading in global securities markets. Electronic trading is in contrast to older floor trading and phone trading and has a number of advantages, but glitches and cancelled trades do still occur.

Market maker financial markets term

A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. The U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price.

New York Stock Exchange American stock exchange

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the world's largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018. The average daily trading value was approximately US$169 billion in 2013. The NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

Goldman Acquisition

REDI became a Goldman Sachs platform in 2000 following the firm’s $6.5B acquisition of SLK. [2] Under Goldman, functionality was steadily added to the platform, including options and futures trading capabilities in 2000, fix-based OMS integration in 2001, portfolio and spread trading capabilities in 2003 and full global connectivity in 2005. [3] By 2013, it was the most widely used EMS by hedge funds and #3 by asset managers, according to the Tabb Group. [4]

Goldman Sachs U.S. investment bank

The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting.

In finance, a portfolio is a collection of investments held by an investment company, hedge fund, financial institution or individual.

Options spreads are the basic building blocks of many options trading strategies. A spread position is entered by buying and selling equal number of options of the same class on the same underlying security but with different strike prices or expiration dates.

Spinoff

In early 2012, Goldman announced its plans to spin off the REDI business as an independent company in order to make it a true multi-broker platform. [5] On July 17, 2013, Goldman announced it had completed the sale of a majority stake in the independent REDI to a consortium of investors including Bank of America Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital. [6] The next day, Bank of America Merrill Lynch announced that it would transfer its own proprietary EMS, InstaQuote, to REDI as part of its investment. [7]

Barclays British multinational banking and financial services company

Barclays plc is a British multinational investment bank and financial services company, headquartered in London. Apart from investment banking, Barclays is organised into four core businesses: personal banking, corporate banking, wealth management, and investment management.

BNP Paribas S.A. is a French international banking group. It is the world's 8th largest bank by total assets, and currently operates with a presence in 77 countries. It was formed through the merger of Banque Nationale de Paris (BNP) and Paribas in 2000, but has a corporate identity stretching back to its first foundation in 1848 as a national bank. It is one of three major international French banks, along with Société Générale and Crédit Agricole. The group is listed on the first market of Euronext Paris and a component of the Euro Stoxx 50 stock market index, while it also included in the French CAC 40 index.

Thomson Reuters Acquisition

In early 2017 Thomson Reuters announced the completion of its acquisition of REDI [8] Terms were not disclosed. According to Michael Chin, managing director and global head of trading at Thomson Reuters, the firm plans to integrate REDI into "its pre-trade and post-trade workflow services, and its Eikon financial analysis solution." [9]

Eikon is a set of software products provided by Refinitiv for financial professionals to monitor and analyze financial information. It provides access to real time market data, news, fundamental data, analytics, trading and messaging tools.

Related Research Articles

An investment bank is a financial services company or corporate division that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.

In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process.

Prime brokerage is the generic name for a bundled package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return. The prime broker provides a centralized securities clearing facility for the hedge fund so the hedge fund's collateral requirements are netted across all deals handled by the prime broker. These two features are advantageous to their clients.

The European Climate Exchange (ECX) managed the product development and marketing for ECX Carbon Financial Instruments, listed and admitted for trading on the ICE Futures Europe electronic platform. For a time it was a subsidiary of the Chicago Climate Exchange but eventually became a sister company. Both companies were owned by Climate Exchange Plc a holding company listed on the London Stock Exchange's AIM market. While products are listed on the London Stock Exchange, the sales and marketing team was initially based in Amsterdam, the Netherlands under its first CEO, Peter Koster, before moving to London, UK in October 2007.

Banc of America Securities LLC (BAS), was the investment banking subsidiary of Bank of America until it was merged with Merrill Lynch after that firm's acquisition in 2008 to become Bank of America Merrill Lynch. Headquartered in New York City, the company competed in both the domestic and international equity and investment banking markets.

Merrill Lynch & Co.

Merrill Lynch & Co., formally Merrill Lynch, Pierce, Fenner & Smith Incorporated, was an American investment bank that existed independently from 1914 until January 2009 before being acquired by Bank of America, thereby forming Bank of America Merrill Lynch.

A primary dealer is a firm that buys government securities directly from a government, with the intention of reselling them to others, thus acting as a market maker of government securities. The government may regulate the behavior and number of its primary dealers and impose conditions of entry. Some governments sell their securities only to primary dealers; some sell them to others as well. Governments that use primary dealers include Belgium, Brazil, Canada, China, France, Hong Kong, India, Italy, Japan, Singapore, Spain, the United Kingdom, and the United States.

Intercontinental Exchange American exchange and clearing house company

Intercontinental Exchange (ICE) is an American company that owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange equity options exchanges and OTC energy, credit and equity markets.

Turquoise is an equities trading platform, created by nine major investment banks in 2008. The aim was to provide dealing services at a 50% discount to traditional exchanges. It is a hybrid system that allows trading both on and off traditional exchanges. The system was advertised as a "pan-European platform based in London".

Markit Ltd. was a global financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing. The company provides independent data, trade processing of derivatives, foreign exchange and loans, customised technology platforms and managed services. The company aims to enhance transparency, reduce financial risk and improve operational efficiency. Its client base includes institutional participants in the financial marketplace. On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit.

Instinet is an institutional, agency-only broker that also serves as the independent equity trading arm of its parent, Nomura Group. It executes trades for asset management firms, hedge funds, insurance companies, mutual funds and pension funds. Headquartered in New York, the company provides sales trading services and trading technologies such as the Newport EMS, algorithms, trade cost analytics, commission management, independent research and dark pools of liquidity.

BofA Securities

BofA SecuritiespreviouslyBank of America Merrill Lynch (BAML) is an American multinational investment bank division under the auspices of Bank of America. Not to be confused with Merrill, the wealth management division of Bank of America, both firms are broker-dealers and engage in prime brokerage.

SURETRADE was a Lincoln, Rhode Island–based investment firm created in 1997 as one of the first online brokers of the dot com era. Before being absorbed by Fleet Boston's Quick & Reilly in 2001, the Rhode Island firm grew to having over 350,000 customers and nearly $2 billion in assets.

IRESS Australian software company

IRESS is an Australian software company specialising in the development of software systems and services for financial markets and wealth management.

KCG Holdings

KCG Holdings, Inc. was an American global financial services firm engaging in market making, high-frequency trading, electronic execution, and institutional sales and trading. The company was formed July 1, 2013 at the completion of the previously announced merger whereby Knight Capital Group, Inc. and GETCO Holding Company, LLC were combined. Global growth equity firm General Atlantic, with a 25% stake in GETCO, made an additional equity investment at the time of the merger. Rene Kern, Managing Director at General Atlantic joined the board of directors

Bloomberg Tradebook, LLC., the agency broker of Bloomberg L.P., serves global investment advisors, money managers, hedge funds, proprietary desks and broker dealers, with access to global trading venues, proprietary trading algorithms, execution consulting services, pre-and-post trade analytics and independent research.

Tradeweb

Tradeweb Markets LLC (Tradeweb) is an international financial services company that builds and operates electronic over-the-counter (OTC) marketplaces for companies that trade fixed income products and derivatives. The company was co-founded in 1996 by Lee Olesky and Jim Toffey and now serves a variety of institutions, a network that includes the largest banks, asset managers, central banks, pension funds, and insurance companies. Since its founding, Tradeweb has grown into a global company that operates across multiple currencies and in numerous countries. Its focus is on applying technology to drive greater efficiency, transparency, and overall performance for institutions that trade fixed income and derivatives products.

Howard Edelstein is an American corporate executive and serial entrepreneur, in the financial technology industry, where he applied information technology methods to previously paper-based transactions processing and settlement systems. Edelstein was founder, president and CEO of Thomson Electronic Settlements Group, CEO of BT Radianz, NYFIX and BondDesk Group. He is currently the CEO of BioCatch, a behavioral biomentrics start-up company.

Quilter plc

Quilter plc, formerly known as Old Mutual Wealth Management Limited, is a financial services company formed to take over the UK wealth management business of Old Mutual plc after its separation of business. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

References

  1. "Executing Broker Network". REDI. Retrieved 2015-05-26.
  2. Gasparino, Charles (September 11, 2000). "Goldman Sachs Agrees to Acquire Market Maker Spear Leeds & Kellogg". Wall Street Journal.
  3. "Our History". REDI. Retrieved 2014-09-21.
  4. "Buyside OMS & EMS: A Market Snapshot". Tabb Group. January 28, 2013.
  5. Schmerken, Ivy (February 8, 2012). "Goldman Sachs to Spin Off REDI Tech Group". Wall Street & Technology.
  6. "Goldman Sachs Completes Sale of Majority Equity Stake in REDI". Goldman Sachs. July 17, 2013.
  7. "Bank of America Merrill Lynch Transfers InstaQuote to REDI". Bank of America Merrill Lych. July 18, 2013.
  8. Brazier, John (January 17, 2017). "Thomson Reuters Completes Redi Acquisition". Waters.
  9. Shashoua, Michael (January 18, 2017). "Thomson Reuters Sets New Foundation For REDI". Intelligent Trading Technology.