With more than 37 percent of all interbank spot broking activity in London and more than 50 percent in Asia traded electronically on an Electronic Broking Services (EBS) workstation, management of this computer network is no small task-particularly as this dealing system, the result of a 14 bank partnership, gained ground on rival Reuters.
So when EBS, which provides electronic broking services for interbank F/X, submitted an RFP to incumbent Digital, as well as IBM and EDS, it was looking for a company with global capabilities, fast response time (one hour versus a rumored six hours on Digital's part) and "subject matter expertise" in the interbank F/X trading business, according to a source close to the deal. It found Plano, TX-based EDS, which won the 10- year, $700 million contract in April. Under terms of the agreement, EDS will manage and upgrade EBS's computer network as well as provide technical support.
The high visibility deal with EBS, which averages transaction volume in excess of US$70 billion per day, is a global calling card for EDS. As one source puts it, EDS's ability to support mission-critical applications and the F/X activities of these 14 global banks-count Citi, Chase, CS First Boston among them-is "an opportunity going forward to grow new business from these organizations." H.Sraeel