Reuters starts cheaper bullion news service

In a bid to target the medium and low-tier bullion trader, Reuters has launched a service that will provide players with specific news on prices of metals at a lower subscription fees.

Reuters Trader for Precious Metals (RTPM) currently charges $500-750 for its services. The subscription varies depending upon facilities, said Rohit Katyal, business development manager, Commodities & Energy, South East Asia.

A fee between $300-350 has been fixed for RTPM which targets jewellers and medium-size gold traders who do not require absolute information on the movement on gold.

Reuters, providing commodity and energy information systems for some time now, has changed focus from high-tier gold traders to medium and low-tier traders who do not want news and prices in as much details as premium customers and do not want to pay higher fees, Katyal said.

Katyal, however, denies any attempt to switch from existing customers to new ones arguing that the taste of high profile traders would not change with the cut in subscription fees and facilities.

The important difference between the existing services and the RTPM is the dissemination of service. The existing customers would get reports on all commodities while the RTPM is restricted to bullion prices and news only.

The prices and information is disseminated through leaselines and internet.

RTPM provides comprehensive coverage of the cash, futures and related markets for precious metals, backed up by comprehensive news coverage of the not only the precious metals market, but related company, geographical and political news that is likely to impact these markets.

According to industry estimates, there are over 2,00,000 traders and jewellers in the country who trade in excess of 700 tonne of gold annually. Not all of them have access to live prices and news on bullion or forex, which is their biggest exposure in this market.

Reuters is currently targeting 20-25 terminals with a hope for 100 per cent additions every year.

Electronic trading of bullion will be added to the existing Reuters Trading for Foreign Exchange (RTFX) service, which is available via the Reuters desktop at no additional cost, and will be aimed at smaller banks and corporate treasury customers.

Reuters will build on its existing community of price-takers and price-makers already using Reuters information services and through existing RTFX users who want to trade bullion.

Reuters would also launch bullion prices on mobile service through SMS which may help users monitor prices.

Katyal said the company has acquired Moneyline Telerate, which will help it get past competition in the segment.

"We are also hard hit by the commodities exchanges whIch display precious metals prices absolutely free," he added.