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Interactive Data Announces Wide-Ranging MIFID Offerings
Data and services from across Interactive Data to help customers comply with the obligations imposed by MiFID
25 April 2007 - London and Bedford, Mass.
Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related services, today announced that the expertise across its businesses has been brought together to offer a broad, cohesive range of data and services to help customers comply with the obligations that will be imposed by the Markets in Financial Instruments Directive (MiFID). Interactive Data’s real-time and reference data services – including new bespoke services – can help customers with the requirements of pre- and post-trade transparency, evidencing best execution, trade venue selection and reviews of order execution policy, code of conduct and client classification obligations, transaction reporting, managing conflicts of interest and managing risk.
MiFID, which will be implemented in European Union (EU) member states in November 2007, broadens and strengthens regulation across Europe. It introduces a single market and regulatory regime for investment services across the 27 EU member states, plus Iceland, Norway and Liechtenstein (European Economic Area states), which have chosen to adopt the requirements of MiFID.
Interactive Data has been proactively involved in MiFID research and planning for well over two years and has held regular meetings with customers, software and application vendors, and relevant organisations to better understand the needs of the industry. Interactive Data is also a regular participant in the MiFID Joint Working Group and its related subject groups, and its senior managers are frequently called on to speak at MiFID-related events. Such involvement has contributed to the breadth and depth of Interactive Data’s overall suite of offerings that spans the enterprise.
Roger Sargeant, managing director of Interactive Data (Europe) Ltd., commented: “The Interactive Data businesses have worked together to develop a powerful range of services to help firms meet their compliance obligations, including increased credit, market and operational risk management requirements. We intend to continue to work with the industry to provide our customers with access to a broad range of information through flexible offerings that can seamlessly integrate into their workflow. Our MiFID-related offerings further demonstrate this commitment.”
Through its Real-Time Services business, Interactive Data will collect and disseminate pre- and post trade pricing information from new sources via its low latency, digital datafeed service, PlusFeedSM. This can allow clients to easily aggregate data across the numerous trading venues and generate a combined and overall view of market activity. Data collection tools and a customised website are designed to help investment firms operating as systematic internalisers (SIs) to meet their pre-trade transparency obligations.
A new tick-data repository of pre- and post-trade information, ready to store data from 1 November 2007, can help investment firms identify the best execution price from across numerous trade venues in accordance with their order execution policy. The tick-data repository can also help investment firms periodically review the trade venues identified in their order execution policies in accordance with MiFID.
MiFID Advisor Suite, a new customised service from Interactive Data Managed Solutions, has been designed to help investment firms comply with their MiFID code of conduct obligations, enabling online classification of clients, suitability check of investments, portfolio valuation and historical record keeping.
Interactive Data’s Pricing and Reference Data business provides tools to help post-trade pricing operations departments of investment firms efficiently calculate an investment fund’s Net Asset Value (NAV) or to value a portfolio. Its Fair Value Information Service can be used if no current market price is available.
In addition, a huge raft of existing and new high quality reference data offered by Interactive Data’s businesses will be available to help identify trade venues and their types by location codes, the most relevant market for an instrument, whether an instrument is within the scope of MiFID, the instrument type and whether it is complex or non-complex. The reference data identifies the classification of a financial instrument code (CFI), the Unique or Unambiguous Instrument Identifier (UII), a share’s liquid status and its deferred publication delay potential.
Interactive Data, through its Pricing and Reference Data business, also offers services to help its customers manage conflicts of interest and risk as imposed by the Capital Requirements Directive (CRD). Its risk and analytical data service can help customers comply with market risk obligations, its business entity data service with credit risk obligations, and its credit operational risk services with operational risk obligations.
Bob Cumberbatch, business lines director, Interactive Data (Europe) Ltd., added: “Interactive Data will continue to be an aggregator, as well as a distributor of data from other aggregators, trade venues and for investment firms who choose to publish their data directly to the market. Our pricing source and reference data stores will be ready to receive data to be published by regulators in time for testing well before the 1 November live date, whilst our tick history will be ready to store data from 1 November 2007 onwards.”
Interactive Data Corporation Forward-looking and Cautionary Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include our statements discussing future financial conditions, results or projections, including statements relating to (i) the anticipated impact of the Xcitek Market Data acquisition on our business, including any impact on our earnings and cash flow, (ii) the anticipated timing of the closing, (iii) our plans to expand the services we offer to Xcitek Market Data, Interactive Data Pricing and Reference Data or Interactive Data customers, (iv) our ability to penetrate new markets for our services as a result of the acquisition and accomplish our other strategic objectives, (v) our ability to facilitate better use of our content by our customers, and (vi) our plans to combine Xcitek Market Data and Interactive Data Pricing and Reference Data’s products and services to achieve cost-savings synergies and revenue growth. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include: the acquisition may not close on a timely basis or at all; our ability to successfully integrate the Xcitek Market Data business; and our ability to retain key employees of Xcitek Market Data. Other factors include, but are not limited to: (i) the presence of competitors with greater financial resources than ours and their strategic response to our services and products; (ii) a possible decline in activity levels in the global securities markets; (iii) new offerings by competitors or new technologies that could cause our products or services to become less competitive or obsolete; and (iv) other factors identified in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements.
About Xcitek Market Data
Xcitek’s market data offerings include Corporate Actions, Municipal Actions, Cost Basis, Class Actions, Securities Payments, and other financial data. We serve over 2,000 institutional clients worldwide, directly and through our distributors. Our information impacts millions of investors through brokerage, trust and custody statements. Ranked #1 for more than ten consecutive years by The Summit Group, Xcitek has led all other providers in its category in such areas as data accuracy, data timeliness, coverage, and delivery reliability. User-friendly, flexible, and affordable, Xcitek’s web-based solutions deliver time-sensitive and critical information straight to the desk-top.
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company’s businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world's best-known financial service and software companies subscribe to the Company's services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia. The Company is headquartered in Bedford, Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, owns approximately 62 percent of the outstanding common stock of Interactive Data Corporation.
Interactive Data Pricing and Reference Data provides global securities pricing, evaluations and reference data designed to support financial institutions’ and investment funds' pricing activities, securities operations, research and portfolio management. Interactive Data Pricing and Reference Data collects, edits, maintains and delivers data on more than 3.5 million securities, including daily evaluations for approximately 2.5 million fixed income and international equity issues. Interactive Data Pricing and Reference Data specialises in ‘hard-to-get’ information from emerging markets and evaluates many ‘hard-to value’ instruments.
Pricing, evaluations and reference data are provided in the U.S. through Interactive Data Pricing and Reference Data, Inc. and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data Corporation and its businesses, please visit www.interactivedata.com.
Interactive Data and the Interactive Data logo are service marks of Interactive Data Corporation.
For More Information:
Investors
Andrew Kramer
Tel: +1 781-687-8306
Email: andrew.kramer@interactivedata.com
Media
Sue Mitchell (European media)
Tel: +44 (0)20 7825 8076
Email: sue.mitchell@interactivedata.com
John Coffey (US Media)
Tel: +1 781-687-8148
Email: john.coffey@interactivedata.com
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