The FCA found that the " essence" of broking was the timely provision of information and that clients were entitled to rely upon that. The FCA found that a central role of ICAP's FX brokers was to provide information to clients to assist them to make trading decisions. ICAP operates as an inter-dealer broker for institutional clients in the international FX options markets. ICAP was found by the FCA to have breached Principles 2 (due, skill care and diligence), 3 (responsible organisation and control of affairs and risk management) and 5 (proper standards of market conduct) of the FCA's Principles for Businesses. The FCA investigation determined that the practice of "printing" (see below) was widespread, conducted openly and very much considered by the brokers to be part of their job. (This was the reduced figure after applying the 30% early settlement discount to the figure of £4.9m). Following our successful testing of the system in a pilot project for seven banks, which ended in February, we are preparing to launch the service as soon as possible.”ĭerk Brouwer, one of the founders and Director of TriOptima, said “if all the major banks in the world were to accept this service, then total savings would exceed $1 billion per annum.The FCA has fined inter-dealer broker TFS-ICAP ("ICAP") £3.4m in respect of deliberately misleading information provided to clients between 1 January 2008 and 31 December 2015 (the "Relevant Period"). ICAP are providing assistance to help launch our new service together with back office, legal and compliance support. The triReduce service will increase efficiency and greatly reduce the cost of trading in the OTC Interest Rate Swap market.”īrian Meese, of TriOptima, said “we are delighted to have the backing of the largest interest rate swaps broker. The triReduce service provides our customers with an efficient way of collapsing their swap portfolios, thus releasing them from charges associated with capital and credit as well as eliminating ongoing operational costs. TriOptima has developed the triReduce service (patent pending), which greatly reduces the outstanding costs of managing an interest rate swap portfolio.ĭavid Casterton, Managing Director of Intercapital Europe Limited, said “ICAP is keen to encourage new developments using technology in the Interest Rate Swaps market, this system will help to increase the trading efficiency of our bank customers. In a separate development, ICAP has acquired a 30% stake in TriOptima, a private Swedish company. The fit and synergies are very compelling.”
This adds significantly to our global bond position and, subject to market activity levels, we expect this acquisition to enhance headline EPS in 2002/3. corporate bonds which compliments our leading position in non-corporate bonds and our electronic broking capability. Michael Spencer, CEO of ICAP plc said “First Brokers has a very strong market position in U.S. The third founder is retiring from the business. In the global bond markets, ICAP has the leading position in broking non-corporate bonds, particularly government bonds and Euro bonds.Īll 100 of the First Brokers staff will be remaining with the company, together with two of the three founding partners. dollar-denominated corporate debt with net assets of $3.5million and normalised post tax profits in 2001 of $10.7 million.
Irrespective of how well the business performs, the absolute maximum payable is capped at $78 million.įirst Brokers Securities is the leading New York inter-dealer broker in U.S.
In the event that the business continues to perform exceptionally well, it is anticipated that such payments will amount to circa $55 million. for an initial cash payment of $35.7 million.įurther payments, which are contingent on the future performance of the business, will be made over three years, at ICAP’s option in cash or shares. ICAP has completed the acquisition of First Brokers Securities Inc.
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