Cargill signs up to patsystems

Chicago-based Cargill Investor Services (CIS) has signed up to a derivatives trading service supplied by patsystems, the London-based software vendor specialising in electronic exchange connectivity and front-end trading.

This deal is viewed as important given patsystems’ strategic review in January, when it said it would renegotiate a ‘significant’ number of existing contracts with clients in a drive towards profitability. The decision to renegotiate contracts led to some industry concern about the long-term viability of the company.

CIS - a futures, options, foreign exchange and over-the-counter derivatives broker - is a wholly owned subsidiary of Cargill, and offers clearing, execution and related client services to institutional customers.

“We aim to go live with the first part of the installation before the end of Q1 this year,” said patsystems’ chief executive, David Jones. “Initially we will offer CIS connectivity to six global exchanges,” he added.

Although Jones remained tight-lipped about the size and specifics of the agreement, he did indicate that the CIS contract was "substantial" and would be determined by performance based on contract volumes, technical support and ongoing installations.

“Patsystems’ browser-based trading systems will allow our customers to log-on and trade from anywhere at anytime,” said CIS vice-president and chief technology officer, Dale Martin.