Why the ERL ?
RICs (Reuters Instrument Codes) are used by traders worldwide to track information on Thomson Reuters’ (now Refinitiv) various financial information networks.
In 2009 the European Commission launched an investigation into the provision of financial data which marked the start of an important change. The investigation asserted that Thomson Reuters (TR) had contravened antitrust rules by leveraging its dominant market position to prevent customers from using RICs to tag data from any other vendor. In June 2013 Thomson Reuters voluntarily offered the EU Commitment : Extended RIC License (ERL) and the European Commission ceased the investigation. The advent of the ERL means that customers can now use RICs to tag data from other sources, making it easier to switch to alternative providers and to benefit from the cost savings this could bring.
“The commitments offered by Thomson Reuters will enhance competition in this market. Financial institutions that use Reuters Instrument Codes (RIC) will now be able to switch to alternative providers more easily,” EU Competition Commissioner
How does the ERL work for me?
As of 19th June 2018 the ERL is no longer available to new clients.
If you purchased an Extended RIC Licence Option (ERLO) before this date then you have until 19th June 2020 to subscribe to the ERL.
As an existing Refinitiv customer, the ERL provides you with a licence to use the RIC to tag real-time market data from other consolidated data sources.
So if you purchased an ERLO, and choose to subscribe to the ERL, you can switch market data vendors without having to re-code applications that consume data using RIC symbols. As soon as your alternative data sources and symbology mapping infrastructure is in place, you can simply switch data providers.
The agreement doesn’t allow data vendors to tag their own data with the RIC at source, so if you want to switch vendors you have to map your RIC to the new vendor’s symbology. You can either do this in-house or through a third party specialist such as Magtia, however the actual cross referencing of the symbols must occur on your site.