Lloyd's dismisses sale rumours of the now defunct Kinnect platform.
Lloyd's of London has denied reports that it is selling the intellectual property of its collapsed trading platform Kinnect, and said that in fact it is sharing information with others for “the good of the market”.
Reports surfaced in The Daily Telegraph last month that parties from Bermuda and the US had been interested in the system. Lloyd's confirmed they had been talking to companies in the US about the project, which was developed over five years and cost £70m. But it said it had no knowledge of any Bermuda companies.
“We always said we would share the intellectual property, but it would be for the good of the market,” said a spokeswoman for Lloyd's. “It is not for sale.”She revealed that the kind of information that would be shared was on issues such as how the platform was constructed, what it was made up of and any lessons that can be learnt from the project. “From things that went well to things that didn't go well,” she added.
Kinnect was closed down on 24 January 2006 after it failed to provide a trading system to connect the market that brokers and underwriters wanted to use. The board of Lloyd's pulled the plug following a review of the system, deciding it did not fit with the new three-year Optimal Platform strategic plan launched a week earlier.
Interim chairman Michael Dawson, said in a letter to customers announcing the demise of the platform, that Lloyd's would no longer back any electronic trading system. Its role “going forward should be primarily on standards setting, not building infrastructure.”
In January Dawson said that Lloyd's would be “providing the Kinnect intellectual property to appropriate commercial organisations.”
Now it is expected that there will be no new trading platform, but peer-to-peer systems will be developed by Lloyd's members and brokers and the markets connected electronically in that way. Lloyd's will, however, consider ways to give support to any system including staffing an operation, maintaining a watching brief of developing standards and systems and making money available to “prime the pump” for the right market solution.