Three investment banking giants are reportedly planning to jointly build a data management company.

JPMorgan Chase, Goldman Sachs and Morgan Stanley are each investing more than $1 million to launch SPReD, which will allow member companies to "create a stream of consistent data that banks use to help determine pricing and transaction costs," according to The Wall Street Journal.

SPReD, short for Securities Product Reference Data, is expected to launch within six to 12 months, the Journal report stated. By joining hands, the participants believe they can drive down data management costs while boosting data quality. The individual firms did not immediately respond to requests for additional comment.

SmartStream Technologies, a software and managed services provider, is central to the SPReD startup effort, according to published reports. The company currently serves 70 of the world's top 100 banks, focusing on such areas as post-trade processing, data management, and trade acceleration services.