TP ICAP

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TP ICAP
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Founded 2017
Key People Nicolas Breteau, Chief Executive
Employees 3,500
Products inderdealer brokerage

TP ICAP is the name given to the brokerage formed when Tullett Prebon acquired its rival ICAP’s voice-broking and information business in December of 2016. The all-stock deal, worth £1.28bn, created the industry's largest interdealer brokerage.[1]

The company's 3,425 brokers run competing desks, trading under the Tullett Prebon and ICAP brands.[2]

TP ICAP has offices in 28 countries.

In August 2020, TP ICAP completed its acquisition of the European equities and fixed income private brokerage Louis Capital Markets and MidCap Partners. TP ICAP first announced those acquisition plans in December 2020 for $21 million in cash. The company plans to integrate Louis Capital with TP ICAP global broking division, which offers interdealer broking to large banks.[3]

In November 2020, the company announced it would embark on a cost-cutting plan designed to improve its operating profit margins over the next year, a move expected to result in job cuts. The company said its total third-quarter 2020 revenues declined 19% versus third-quarter 2019 as volumes faltered amid the "economic dislocation" resulting from COVID-19 and other factors. [4]

The company said on March 24, 2021 that it had completed the acquisition of Liquidnet Holdings, Inc., an institutional trading network and dark pool operator. First announced in September 2020, the deal was worth $700 million -- $525 million in cash upfront, $50 million three years after completion, and up to $125 million later, depending on Liquidnet’s performance. Based in London, the combined company is expected to support TP ICAP’s electronic trading capabilities and combine its high-touch derivatives and cash equities division with Liquidnet’s low-touch block cash equities platform, TP ICAP said. [5] [6]


History[edit]

See the History sections of Tullett Prebon and ICAP.

Technology[edit]

TP ICAP uses Trading Technologies' X_TRADER platform and TTNET hosting services. In July 2020, TP ICAP entered into a multi-year agreement with Trading Technologies to implement its order management system (OMS) in 85 trading systems in London, Paris and New York.[7]

Products and Services[edit]

TP ICAP is the parent company to four broking brands — Tullett Prebon and ICAP, which remain as separate, competing desks; PVM, an oil specialist broker; and Mirexa Capital.

The company has 5 divisions: Global Broking, Energy & Commodities, Institutional Services, Data & Analytics, and Corporate Services.[8]

  • The Global Broking division services markets in Rates, FX and Money Markets, Emerging Markets, Equities and Credit products.
  • Energy & Commodities operates markets in oil, gas, power, renewables, ferrous metals, base metals, precious metals, soft commodities and coal.
  • Institutional Services provides broking and execution services to a range of institutions.
  • Data & Analytics provides data sets of OTC pricing products to enable clients to analyse, record, trade and risk manage their portfolios.
  • Corporate Services provides support staff and infrastructure.

In September 2020, TP ICAP launched a foreign exchange options platform, FXOhub.[9]

In June 2021 TP ICAP announced plans to launch a wholesale trading platform for cryptoassets in collaboration with Fidelity Investments and Standard Chartered's digital assets custody unit, Zodia Custody.[10]

Key People[edit]

References[edit]