Kinetech, Reuters Sign Redistribution Deal for Prebon Data

LONDON--Kinetech, the exclusive distributor of Prebon Yamane’s over-the-counter data, has sold Prebon’s data to Reuters for global distribution.

The Kinetech Data Services unit collects, manages and redistributes Prebon’s data to market data vendors. That content includes over 2,500 real-time data elements for products in the money markets, foreign exchange, emerging markets, interest rate derivatives and energy segments.

Geoffrey Sanderson, Kinetech’s chief executive (and former managing director of Reuters’ Securities Transactions Services group), says Kinetech will deliver around 200 pages of Prebon information as record-based data to Reuters. Additionally, Kinetech will produce a series of records comprising prices from all of Prebon’s regions globally that it will update continuously.

This data is delivered to Reuters via an elementized 24-hour feed that Sanderson says greatly enhances the value of Kinetech’s data offering. Reuters will integrate Prebon’s data into the various services that it offers to banks and financial institutions.

The Reuters deal follows a sales agreement Kinetech made with Bloomberg in April, when it sold Prebon’s Asian market data content to the vendor. Bloomberg added it to the data it already has from Prebon’s other regions.

The Bloomberg agreement covered the majority of products brokered in Prebon’s Asian offices, including interest rate derivatives, non-deliverable forwards and swaps, foreign exchange and money markets.

Kinetech is targeting other vendors with its data and already has several customers taking Prebon’s data, though officials decline to name them.

Sanderson says he also sees good growth potential in the area of historical data sales. Kinetech uses a Fame database to archive each price update on every product. Price history is available from the late 1970s and early 1980s in many products.

Kinetech was formed in April 2000 when Prebon Yamane spun off its technology group into an independent company. The aim of Kinetech is to establish and grow electronic marketplaces, provide IT support services to Prebon Yamane and sell market data, says Sanderson.

Under the agreement, Prebon provides its market data exclusively to Kinetech Data Services--a unit of Kinetech that in turn sells the data to potential buyers. Kinetech provides the systems to collect, format and redistribute Prebon’s global data to the vendors and carries out the sales and marketing for the data.

Kinetech will be launching other products in the market over the next couple of months.