Dive Brief:
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The Wall Street Journal reported that JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley will work together to create a company focused on gathering clean reams of data used to determine pricing and transaction costs.
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The banks hope to cut costs by pooling their resources.
- Sources say the entity will initially focus on listed derivatives and equity data, with fixed income-related data added later.
Dive Insight:
The initiative is being called "SPReD” (Securities Product Reference Data), and may be launched within the year.
Citing people familiar with the matter, The Wall Street Journal said each bank is investing seven figure sums in the project.
Vendor SmartStream Technologies will be involved in the project and some of its business will be spun off into SPReD, The Wall Street Journal said.
