Reuters buys remainder of Icor

Reuters has taken over Icor Brokerage's electronic foreign exchange options platform, reports Risknews’ sister publication FX Week . The news follows Reuters’ announcement last week that it has bought the remaining 50% stake in Icor it did not already own.

Reuters bought the remainder of the company it had part-owned since 2001, for an undisclosed sum on March 11.

Icor will now be integrated into Reuters' Treasury Broking Services division under global head Mark Kiley in London, said a Reuters spokesperson in London.

The purchase adds foreign exchange options brokerage to Reuters' armoury of electronic forex services of spot and forwards, and represents a natural progression of the joint venture, said the spokesperson.

It will also extend Reuters' foreign exchange business, which saw growth of 20% in volumes for spot and forward forex during 2003.

Icor currently has 50 user banks in 16 countries for its foreign exchange options service, which covers 10 currency pairs.

Reuters takes on Icor's 15 remaining staff in New York, London, Tokyo and Sydney, although Jeff Larsen, co-founder and chief executive officer, will leave the firm at the end of March.

Before the joint venture with Reuters, Icor had employed more than 60 staff worldwide, but numbers have been shed over the past two years.

Reuters also purchased the interest rate swaps platform that Icor had developed on a contractor basis for Reuters. Reuters is currently deploying it to the first user banks, and plans to launch the service in Europe in the second quarter before extending it globally.