Reuters and ICor Form Joint Venture Broker for Derivatives Market
Reuters and ICor Brokerage have created a new 50/50 joint venture, ICor Brokerage Ltd, to develop electronic brokerage services for the global inter-bank foreign exchange options and interest rate derivatives markets. Reuters is initially contributing US$10 million in cash to the joint venture. It will also host the ICor broking system on its Dealing 3000 foreign exchange interbank trading system and license the use of the Reuters brand. The joint venture will also benefit from Reuters global technical and marketing support. ICor Brokerage is contributing all its existing business into the new venture. The new venture will initially focus on electronic broking services for foreign exchange options, with a planned global roll-out starting in Asia from January next year, extending to Europe and North America later in 2002. The new company also plans to expand to offer interest rate swap and interest rate options broking from the second half of 2002.