Arcontech signs new agreement with tier 1 bank client

(Sharecast News) - Financial market data processing and trading company Arcontech announced the signing of a new agreement with a longstanding tier 1 bank client on Friday.

The AIM-traded firm said the agreement related to the migration of the client from Windows to Linux, and to upgrade its systems to Arcontech's new graphical user interface (GUI), and monitoring functionality for the client's multi-vendor contribution system (MVCS).

Together with the new business win to contribute to Factset announced on 2 October, the additional recurring revenue would be around £0.1m per annum.

The company said the agreement was a result of the client effectively outgrowing their existing system in terms of data throughput and destinations, which include Bloomberg, Refinitiv, Factset, Six-Telekurs, ICE and internal applications.

It said the client also wished to capitalise on the additional functionality available with Arcontech's new GUI, which, as well as monitoring and recording data flow and system usage, allowed for immediate identification of issues and the ability to alert by email, to reduce the risk associated with sending their data to numerous market data vendors and internal destinations.

Other factors included the ability to send data to Refinitiv in their new 'Contribution Channel' format, and connect MVCS to ITRS Geneos, the Client's overarching monitoring system.

The potential to resolve data issues before the bank's clients or their business were affected was a key factor in Arcontech winning the contract, the board said.

"We are very happy to enter a new phase of providing contribution software for this client based on the Red Hat Linux operating system," said chief executive officer Matthew Jeffs.

"The majority of our clients now use Linux which brings benefits of consistency with other systems the bank has usually deployed.

"This migration is also a good example of our ability to receive data from proprietary sources and to support multiple destinations including those using FIX based protocols."

Jeffs said in this instance, as well as existing destinations, the company would also be supporting the new Refinitiv Contribution Channel format, which could handle a greater throughput of data.

"That said, Arcontech software will continue to support Market Link Protocol wherever used, which has long been established as a default contribution format."

At 1158 BST, shares in Arcontech Group were up 4.24% at 205.34p.