ICAP Company

ICAP Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

ICAP was founded in September 1999 through the merger of Garban PLC and Intercapital PLC. This merger created a leading intermediary in the wholesale financial markets, particularly in over-the-counter (OTC) trading.

Parent Company/Ownership Structure

ICAP operates as part of the TP ICAP Group, which is a prominent player in the global interdealer brokerage sector. The company underwent significant restructuring in 2016 when it sold its global brokerage business to Tullett Prebon, which retained the ICAP brand.

Headquarters Location

The company's headquarters is located at 135 Bishopsgate, London, EC2M 3TP, United Kingdom.

Global Business Scope

ICAP has a substantial global presence, operating in 22 countries with 33 locations worldwide. It serves a diverse clientele that includes financial institutions, trading companies, and producers across various asset classes.

Main Regulatory Bodies

ICAP is regulated by multiple bodies depending on the regions in which it operates, including but not limited to the Financial Conduct Authority (FCA) in the UK and the Commodity Futures Trading Commission (CFTC) in the United States.

2. Company History and Development

Key Milestones

• 1999: Formation of ICAP through the merger of Garban PLC and Intercapital PLC.
• 2001: The company was renamed ICAP PLC.
• 2006: Acquisition of EBS, a major electronic trading platform for foreign exchange.
• 2012: ICAP restructured and relaunched the Plus Stock Exchange as the ICAP Securities and Derivatives Exchange (ISDX).
• 2016: Sale of its global hybrid voice broking business to Tullett Prebon.

Business Expansion Journey

ICAP has expanded its services and product offerings significantly since its inception. Initially focusing on interest rate swaps, the company has diversified into various asset classes, including commodities, credit derivatives, and foreign exchange.

Customer Base Growth

ICAP serves a well-diversified client base that includes physical trading companies, banks, and institutional investors. The firm has grown its customer relationships through a combination of voice and electronic trading services.

Platform Development History

ICAP has developed several trading platforms, including BrokerTec and EBS, which facilitate electronic trading. These platforms have become critical to ICAP's operations, with a significant percentage of trades executed electronically.

Important Awards or Recognitions Received

ICAP has been recognized for its innovative trading solutions and services. It has received industry awards, including accolades for its electronic trading platforms and contributions to the financial markets.

3. Trading Services Offered

Forex Trading Options

ICAP offers a comprehensive range of forex trading options, providing access to a wide variety of currency pairs. While specific numbers may vary, clients can typically trade dozens of major and minor currency pairs through its electronic platforms.

Stock Trading Options

The company provides trading services for stocks, focusing primarily on government securities, corporate bonds, and fixed income derivatives. ICAP facilitates trading in both voice and electronic formats.

CFD Trading Products

ICAP offers Contracts for Difference (CFDs) across various asset classes, allowing clients to speculate on price movements without owning the underlying asset.

Other Financial Instruments

In addition to forex and stock trading, ICAP provides access to a range of financial instruments, including:

• Commodities: Trading in crude oil, natural gas, metals, and more.
• Derivatives: Interest rate swaps, credit derivatives, and equity derivatives.
• Emerging Markets: Focus on regions like Brazil, Russia, India, and China.

Special Services or Unique Advantages

ICAP's unique advantages include its combination of voice and electronic trading capabilities, extensive market knowledge, and a strong focus on client service. The company also emphasizes price discovery and liquidity provision, catering to the needs of institutional clients.

4. Regulatory and Legal Background

Detailed Regulatory Information

ICAP is regulated by several authorities, including:

• UK: Financial Conduct Authority (FCA)
• US: Commodity Futures Trading Commission (CFTC)
• Other jurisdictions: Various local regulatory bodies depending on the region of operation.

Legal Entity Structure by Region

ICAP operates through multiple legal entities based on geographic requirements. This structure allows the firm to comply with local regulations while providing a broad range of services.

Client Fund Protection Measures

ICAP implements stringent measures to protect client funds, including segregating client accounts and adhering to regulatory standards for financial security.

Countries/Regions Served

ICAP serves clients across a wide array of countries, with a notable presence in major financial centers such as London, New York, Singapore, and Sydney.

Compliance History

ICAP has faced regulatory scrutiny in the past, notably related to the LIBOR manipulation scandal. The company has since taken steps to enhance its compliance framework and address regulatory concerns.

5. Competitive Landscape

3-5 Main Competitors

ICAP operates in a competitive environment with several key players, including:

• Tullett Prebon: A direct competitor following the sale of ICAP's global brokerage business.
• BGC Partners: Another significant interdealer broker.
• Tradition: A global interdealer broker with a strong presence in various markets.
• CITIC Securities: A major competitor in Asia, especially in equity and fixed income markets.

Positioning in the Industry

ICAP is positioned as a leading interdealer broker, known for its comprehensive range of trading services and strong technological capabilities. Its focus on both voice and electronic trading differentiates it from competitors that may specialize in one area.

Market Differentiation Factors

Key factors that differentiate ICAP in the market include:

• Integrated Trading Solutions: A combination of voice and electronic trading services.
• Expertise and Experience: A team of experienced brokers who provide insights and market intelligence.
• Technological Innovation: Continuous investment in advanced trading platforms to enhance client experience.

In conclusion, ICAP stands as a prominent entity in the financial services sector, with a rich history, diverse trading services, and a commitment to regulatory compliance. Its global footprint and innovative trading solutions position it well in the competitive landscape of interdealer brokerage.

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