Introduction to the Thomson Reuters
EU Commitment :
Extended RIC License
(ERL)
Prior to the ERL
Many financial institutions have been aware for
sometime that switching to an alternative market data
vendor could provide them with big savings on their
market data costs but it involved re-engineering their
downstream applications to switch to a new
symbology; which in turn meant significant cost and
effort. And so they stayed with the same vendor, year
after year, because a switch just wasn’t economically
viable.
Until now …
Advent of the ERL
The introduction of the ERL allows existing TR real
time data feed customers to use the RIC to subscribe
to other market data vendors data feeds, enabling
them to switch to other consolidated-feed data
vendors without any re-coding or re-configuration of
their subscribing applications. It provides the ability to
achieve significant cost savings without incurring
prohibitive project costs or disruption to trading
operations.
ERL Timeline
•
November 2009 : The European Commission (EC) start an
investigation on the use of Reuters Instrument Codes (RICs).
•
December 2012 : Thomson Reuters voluntarily commit to offer a
license to customers to enable them to use RICs for the purposes of
switching and for ongoing use in their real time applications.
•
June 2013 : Thomson Reuters launch ERL and provide the associated
RIC Maintenance Service (RMS)
•
June 2013 : The 1st Tier 1 Bank adopts ERL
•
June 2013 : The first 3rd Party offering a RIC Mapping Service adopts
the DRL (a version of the ERL specifically for developers)
•
January 2014 : The 1st Bank goes live with ERL – They use an
alternate data vendor for Cash and Derivative instruments traded on
US and European exchanges.
•
June 2018 : The option to take out ERL will expire. Any TR RDF
customer not already an ERL holder will not be entitled to obtain the
RIC license.
ERL Benefits
•
Existing TR real time data feed customers are able to switch
alternative consolidated data vendors without any recoding or
reconfiguring of their RMDS subscribing applications.
•
ERL may also be used to provide fail-over to alternate data vendors
for data resiliency purposes.
•
ERL is ongoing and as such will cover eligible newly issued RICs even after the data vendor switch-over is completed.
•
RMS provides a means of obtaining the cross referencing
information needed to facilitate RIC mapping at a nominal cost ( a
fraction of the cost of Datascope cross referencing)
•
ERL is a GLOBAL license - Thomson Reuters consolidated real time
data feed clients within the European Union or Switzerland are
eligible to apply for an ERL. Once obtained, clients may use their ERL
license globally.
•
Using ERL it is possible to realise data cost savings rapidly - within
months rather than years
ERL / RMS Costs
•
•
•
•
The ERL is a fee paid monthly to Thomson Reuters
It is a License fee to use the RIC on non TR real-time data feeds
The Base price of $750 pcm is license to use 100K RIC’s a month
There after there is a sliding scale of cost / RIC mapped
Number of unique RICs per month
(counted as per RT Service)
Incremental charge per unique RIC
per month (USD)
1 – 50,000
0.010
50,001 – 500,000
0.005
500,001 – 3,000,000
0.002
3,000,001 – no limit
0.001
Summary of ERL Conditions
•
ERL is only available to existing TR Consolidated Real-Time
Data feed Service customers with genuine business
operations in the EEA or Switzerland.
•
Mapping of RICs to alternate symbols cannot be provided
directly by other data vendors.
•
Combinations of direct feed data may also be delivered on
the RIC, but only where the data is normalised, is subject to a
common symbology and / or the data has been
enriched e.g.Wombat , Activ, IDC
•
Tagging of the alternate data with the RIC must occur on the
ERL clients site; meaning that clients must map RICs in-house
or employ a 3rd party to provide the maps.
•
Some RICs are exempt from the ERL. *
•
There are restrictions relating to the types of applications
permitted to subscribe to alternate data via the RIC. *
* Please refer to the full EU commitment for further information
Next Steps
•
Compare data coverage & costs of various data vendors to
evaluate the level of potential savings.
•
Consider a hybrid solution, with a gradual switch over that is
based on specific Exchanges and Asset Categories.
•
Identify a pilot project e.g. switching data for all Options on
OPRA to an alternate source.
Further Information
For Further information on the ‘TR EU Commitment : Extended
RIC License’ please refer to the following resources :-
• Thomson Reuters Full Commitment to the EC
• Commitment Addendum
• Monitoring Trustee Contact Details
These documents can be downloaded from :-
http://www.magtia.com/about-erl
These documents along with ERL application forms may also be
obtained directly from Thomson Reuters via your TR Account
Manager.