Tullett Prebon Company

Tullett Prebon Company

1. Company Overview

Founding Date and Background

Tullett Prebon, an interdealer broker, was founded in 1868 in London, England. The company operates as an intermediary in the wholesale financial and energy sectors, facilitating trading activities for its clients, which primarily include institutional investors, investment banks, and other financial entities.

Parent Company/Ownership Structure

Tullett Prebon is now part of TP ICAP Group, which was formed from the merger of Tullett Prebon and ICAP in 2016. TP ICAP is a publicly traded company on the London Stock Exchange and is recognized as a leading global firm of professional intermediaries.

Headquarters Location

The headquarters of Tullett Prebon is located at 155 Bishopsgate, London, EC2M 3TQ, United Kingdom.

Global Business Scope

Tullett Prebon operates globally, with a presence in over 60 offices across 27 countries. The company provides a wide range of broking services covering various asset classes, including rates, commodities, credit, and equities.

Main Regulatory Bodies

Tullett Prebon is regulated by several financial authorities, including the Financial Conduct Authority (FCA) in the UK, the Commodity Futures Trading Commission (CFTC) in the US, and various other regulatory bodies in the jurisdictions where it operates.

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2. Company History and Development

Key Milestones

• 1868: Tullett Prebon was established in London.
• 2016: The merger with ICAP formed TP ICAP, enhancing its market position and service offerings.
• 2019: The company was fined £15.4 million by the FCA for regulatory breaches, which highlighted the importance of compliance and risk management.

Business Expansion Journey

Tullett Prebon has grown through strategic acquisitions, including the purchase of PVM Oil Associates in 2014 and the Nex Group in 2016. These acquisitions have expanded its capabilities in the energy and commodities sectors.

Customer Base Growth

Over the years, Tullett Prebon has significantly increased its client base, which now includes a diverse range of institutional clients, such as hedge funds, reinsurance companies, and pension funds. This growth has been supported by its reputation as a reliable intermediary in financial markets.

Platform Development History

The company has invested in technology to enhance its trading platforms, offering hybrid electronic trading solutions that combine the benefits of voice broking and electronic execution. This development has improved the efficiency and accessibility of trading for clients.

Important Awards or Recognitions Received

Tullett Prebon has received numerous awards for its services, including being recognized as the "Best Overall Institution - Brokers" in the Energy Risk Commodity Rankings multiple times. The company has also been awarded for its data services and execution facilities across various categories.

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3. Trading Services Offered

Forex Trading Options

Tullett Prebon offers a comprehensive range of forex trading options, providing access to numerous currency pairs. The exact number of currency pairs available may vary, but the platform typically includes major, minor, and exotic currencies.

Stock Trading Options

The company provides broking services for a variety of equity instruments, including cash equities and equity derivatives. Tullett Prebon facilitates trading in both individual stocks and equity indices.

CFD Trading Products

Tullett Prebon 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 equity trading, Tullett Prebon provides access to commodities, energy products, credit derivatives, and insurance-linked securities. The firm also explores opportunities in emerging markets and alternative investments.

Special Services or Unique Advantages

Tullett Prebon distinguishes itself through its hybrid trading model, combining voice and electronic broking to cater to diverse client preferences. The company also emphasizes data analytics and market intelligence, offering clients insights that enhance their trading strategies.

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4. Regulatory and Legal Background

Detailed Regulatory Information

Tullett Prebon is regulated by the following bodies:

• Financial Conduct Authority (FCA) - United Kingdom
• Commodity Futures Trading Commission (CFTC) - United States
• Securities and Exchange Commission (SEC) - United States
• Other regional regulatory authorities depending on operational jurisdictions.

Legal Entity Structure by Region

Tullett Prebon operates through various legal entities in different regions, including:

• Tullett Prebon (Europe) Limited
• Tullett Prebon (Securities) Limited
• Tullett Prebon Americas Corp.

Client Fund Protection Measures

Tullett Prebon adheres to stringent client fund protection measures, ensuring compliance with regulatory requirements. This includes the segregation of client funds and maintaining adequate capital reserves.

Countries/Regions Served

The company serves clients globally, with a strong presence in Europe, North America, Asia-Pacific, and the Middle East. Its extensive network enables it to facilitate cross-border trading efficiently.

Compliance History

Tullett Prebon's compliance history has faced scrutiny, particularly following the FCA fine in 2019. The company has since taken steps to strengthen its compliance framework, enhance risk management systems, and ensure transparency in its operations.

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5. Competitive Landscape

3-5 Main Competitors

Tullett Prebon operates in a competitive landscape that includes:

• ICAP: A leading interdealer broker with a strong focus on electronic trading.
• BGC Partners: Known for its voice and electronic trading capabilities in various asset classes.
• Tradition: A global interdealer broker with a diverse range of financial services.
• Aon: While primarily an insurance broker, Aon competes in the insurance-linked securities market.

Positioning in the Industry

Tullett Prebon is positioned as a leading interdealer broker, particularly in the energy and commodities sectors. Its hybrid trading model and commitment to data analytics provide a competitive edge in the market.

Market Differentiation Factors

The company's hybrid trading approach, extensive global reach, and strong focus on regulatory compliance differentiate it from competitors. Tullett Prebon's reputation for quality service and innovative solutions further enhances its market positioning.

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In conclusion, Tullett Prebon is a prominent player in the interdealer broking space, with a rich history and a commitment to providing high-quality trading services. Its global presence, diverse product offerings, and focus on compliance position it well for continued success in the financial markets. For further information on Tullett Prebon and its services, learn more.