SHORT STORIES

Proposed acquisition of Toronto-based CMQ Communications, Inc. by International Thomson Organization Ltd. won't happen, sources say. Details aren't clear, but deal-breaker appears to have been Telerate, Inc., which has long-term distribution agreement with CMQ (TST, July 6). Sources speculate that Telerate's veto of deal may also have triggered obligation for Telerate to step in and acquire CMQ itself. Telerate officials couldn't be reached.

September 28th TST incorrectly described proposed contents of "ticker window" on Reuter Dealer Trading System intended for U.S. government securities market. Window would contain internal ticker of trades that take place on system.

V-Band Corp. divested UK subsidiary V Band PLC for about $29 million. Dubbed TR Financial Communications PLC after new parent Telephone Rentals PLC, unit has entered into long-term distribution agreement with V Band and will continue to market, install, and maintain V band products. "Sales volume of V band products in the UK through Telephone Rentals will exceed that which would be possible by selling through the subsidiary," says V Band chairman Thomas Feil. Essentially, V Band has cut overhead and raised cash in exchange for long-term distribution deal. Without trace of irony, Feil says, "the proceeds of this sale will be used to expand our presence in world markets."

Chicago Mercantile Exchange members approved proposal to establish after-hours electronic market that operates on Reuter Dealer Trading System (TST, September 14). Post (Pre) Market Trade will operate for 16 hours/day when CME trading floor is closed. PMT still must be approved by Commodity Futures Trading Commission and by Reuters board. It won't be introduced for 18 months. In addition to providing access to PMT, RDTS will also be used by Reuters for government securities and foreign exchange cash markets.

International Swap Dealers Association began distributing floating interest rate prices via Reuter Monitor service. New ISDA rates for deposits in 14 currencies are provided daily on four pages. According to New York-based trade group, Monitor pages represent "first comprehensive source of floating interest rates available for use with swaps." Rates are designed to be used in conjunction with standard form contracts recently introduced by ISDA, says ISDA Chairman Patrick de Saint-Aignan. "This service builds on our overall efforts toward codification of the swap market, and will lead to more efficient swap market information," he says. In addition to ISDA pages of composite rates, Reuters also carries floating interest rates quoted by individual financial institutions. Interest rate swaps information is carried on Telerate Inc.'s contributor pages, some of which are restricted to subscribers designated by particular financial institution.

Reuters Asia plans to launch SDS2 service to customers in Far East via Intelsat Indian Ocean spacecraft in December. As with recently-launched Latin American SDS2, Asian version will use Intelsat's Intelnet I service to broadcast to small Equatorial dishes. Reuters uplink is atop Exchange Square in Hong Kong. Coming soon, says Reuters spokesperson, will be SDS2 service for Australia and Middle East.

International Data Media (U.K.) Ltd. has opened first U.S. sales office in Mt. Laurel, NJ. IDM plans to focus U.S. marketing efforts on its trading room hardware, not its commodity quote feed. Office is headed by veteran futures quote sales exec Len Elkins.