ICAP (company)

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ICAP plc
Type Public
Traded as LSEIAP
Industry Financial Services
Founded 1986
Headquarters London, United Kingdom
Key people Charles Gregson, Non-Executive Chairman
Michael Spencer, Group CEO
John Nixon, Group Executive Director, Americas
Iain Torrens, Group CFO
John Sievwright, Senior Independent Director
Robert Standing, Independent Non-Executive Director
Diane Schueneman, Independent Non-Executive Director
Ivan Ritossa, Independent Non-Executive Director
Revenue £1,472 million (2013)[1]
Operating income £308 million (2013)[1]
Net income £43 million (2013)[1]
Employees 5,000 (2013)
Website www.icap.com

ICAP plc is a UK-based voice and electronic dealer broker and provider of post trade risk services, the largest in the world carrying out transactions for financial institutions rather than private individuals. ICAP is an abbreviation for Intercapital, a name by which the business was previously known. The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

History[edit]

The company developed from a merger between Garban plc and Intercapital plc which created Garban-Intercapital plc in 1999.[2]

Intercapital plc was originally founded by Michael Spencer in 1986 as Intercapital Private Group Limited ('IPGL'); in 1998 it was acquired by Exco plc in a reverse takeover and the enlarged business was renamed Intercapital plc.[3]

Garban plc was originally established in the 1970s as the financial services division of MAI plc. Several takeovers followed, starting in 1977 when MAI plc acquired Harlow, Meyer and Co. Mallon & Dorney and Garvin GuyButler were both acquired by 1982 and in 1983, Garban LLC was acquired giving MAI plc significant broking interests in the UK and overseas. In 1996, MAI plc was merged into United News & Media plc: its financial services division was then de-merged and listed on the London Stock Exchange in 1998 as Garban plc.[2]

The company changed its name from Garban-Intercapital plc to ICAP plc in 2001.[2]

In 2006 it bought EBS, a major trading platform for foreign exchange.[4]

On 5 December 2007, ICAP acquired Traiana, Inc. for $247 million (£121 million).[5] Traiana is a provider of post-trade processing, client servicing, and trading partner integration solutions for financial institutions. The company is headquartered in London and has a development centre in Tel Aviv, Israel.[6]

In June 2012 ICAP acquired Plus Stock Exchange plc and relaunched it as the ICAP Securities and Derivatives Exchange (ISDX), one of only six Regulated Investment Exchanges (RIE) in the United Kingdom, the others being the London Stock Exchange (LSE), the London International Financial Futures and Options Exchange (LIFFE), the London Metal Exchange (LME), the Intercontinental Exchange (ICE) and BATS Chi-X Europe.[7]

In September 2013, ICAP settled allegations that they had manipulated the London Interbank Offered Rate (LIBOR). The United States Department of Justice charged three former employees, and ICAP paid $65 million to the U.S.'s Commodity Futures Trading Commission and £14 million ($22 million) to Britain's Financial Conduct Authority.[8]

Operations[edit]

ICAP trades in a number of areas, including interest rates, credit, credit derivatives, foreign exchange, interest rate swaps, intellectual property (patents, via ICAP Patent Brokerage), and equity derivatives.[9]

ICAP plc is headquartered in London, United Kingdom and operates from London, New York (Jersey City) and Tokyo with offices in a further 30 smaller financial centres such as Hong Kong, Madrid, Sydney and Singapore. The average daily transaction volume for ICAP plc exceeds US$1.3 trillion, more than 60% of which is electronic.

The business is managed across the following three divisions: Global Broking (by geographic region), Electronic Markets and Post Trade Risk Mitigation and Information.

Competition[edit]

See also[edit]

References[edit]

  1. ^ a b c "Annual Report 2013". Retrieved 21 March 2014. 
  2. ^ a b c "ICAP History". Icap.com. Retrieved 18 April 2011. 
  3. ^ "Numis Corporation Board Changes" (PDF). Retrieved 18 April 2011. 
  4. ^ ICAP Agrees to Buy Electronic Currency Broker EBS, Hamish Risk and Andrew Reierson, Bloomberg, 2006-04-21
  5. ^ "ICAP acquires Israeli post-trade software firm Traiana". ITPro. 11 Oct 2007. 
  6. ^ "Traiana, Inc. - Company Profile". BusinessWeek. 
  7. ^ "ICAP Acquires Plus Markets’ Unprofitable Stock Exchange". Bloomberg. 18 May 2012. Retrieved 21 March 2014. 
  8. ^ Scott, Mark and Julia Werdigier (September 25, 2013). "ICAP to Pay $87 Million Fine in Libor-Fixing Case". The New York Times. Retrieved 2013-09-26. 
  9. ^ "ICAP plc 2007 Annual Report p2 ''ICAP and the OTC markets''". Miranda.hemscott.com. Retrieved 18 April 2011. 

External links[edit]