ICAP to combine EBS and BrokerTec businesses

Multi-faceted British markets operator and provider of post trade risk mitigation and information services ICAP plc (IAP.L) today announced that it will combine its electronic businesses EBS and BrokerTec.

EBS and BrokerTec represent two of the largest electronic trading platforms in FX and fixed income respectively. These platforms offer efficient and effective trading solutions to more than 3,300 customers in over 50 countries across a range of instruments including spot FX, US Treasuries, European government bonds and EU and US repo.

The combined business, which will be known as EBS-BrokerTec, will allow ICAP to leverage BrokerTec’s market leading platform, client relationships and strong team, as well as EBS’s technology and innovation pipeline, to deliver unique products and services to the industry and expand the addressable market of both platforms.

Michael Spencer, ICAP Group Chief Executive, will be Chairman of EBS-BrokerTec. Gil Mandelzis, current CEO of EBS, will become CEO of the new EBS-BrokerTec business. Mr. Mandelzis founded Traiana, a provider of post-trade and risk management services acquired by ICAP in 2007, and has led EBS since March 2012. Gil led EBS’s transformation from a single to a multi-product company.

Seth Johnson will step down as the CEO of BrokerTec but remains on ICAP’s Global Executive Management Group.  Richard Kerschner, Head of Corporate Development at EBS, has been appointed as the interim CEO of BrokerTec.

Mr. Spencer explained “Our EBS and BrokerTec businesses are both world-leading electronic platforms that provide trading solutions across FX and fixed income products. Bringing EBS and BrokerTec together will allow us to deliver new products and reach new client segments.”

“We have demonstrated that we are able to deliver successful new trading solutions with the launch of EBS Direct last year, which has experienced exceptional volume growth. We want to continue to expand our addressable market with the launch of innovative products into other asset classes. I look forward to working closely with Gil and the team in this exciting phase of growth” concluded Mr. Spencer.

Read Also: