Liberty, a unit of Luxembourg-based Cedel International SA, provides electronic links for the global securities markets, offering order routing and order management services.

The company, with some 150 clients, also provides links to other trading processes such as clearing and settlement.

Reuters said the cost of the acquisition was not material and would be funded out of existing cash resources.

"We intend to become a prominent supplier of order handling capabilities for the securities markets. The purchase of Liberty is a significant milestone in this strategy," Reuters chief executive Peter Job said in a statement.

Reuters also agreed with Cedel Bank, a supplier of clearing, settlement and custodial services, to develop further "straight through processing" links that will allow customers toclear and settle transactions in Cedel Bank.

The acquisition of Liberty follows Reuters' recent purchase of a 33.5-per cent stake in GL Trade, which provides access to electronic stock exchanges.

Reuters will complement these capabilities with system solutions and integration for customers who require enterprise-wide order management systems.