ICAP puts the icing on the cake for a whole bunch of traders. The company, the world's largest interdealer brokerage with more than $2 trillion in average daily volume, is a wholesale broker of OTC derivatives, money markets, and securities, focusing on foreign exchange, energy, credit, and equities markets. With operations in more than 30 countries, the firm is also a major interdealer broker in US Treasury notes. Direct trade execution and processing are available to investment houses and major banks through the company's electronic trading services. Institutional clients include international, investment, and commercial banks. ICAP also has a joint venture with insurance broker Jardine Lloyd Thompson.
The joint venture was established to capitalize on opportunities in which the securities, derivatives, and insurance markets intersect. Other joint ventures include Tradition-ICAP with the OTC FX division of TFS Financial, SIF ICAP Mexico with the Mexican Stock Exchange, and CFETS-ICAP with the China Foreign Exchange Trade System & National Interbank Funding Center.
In addition to serving as an interdealer broker, the firm deals in US, UK, and Australian government bonds, corporate bonds, Eurobonds, and foreign exchange options. The firm boasts a significant presence in both the US and Asian bond markets.
ICAP is always on the lookout for ways to boost its services and geographic reach. In 2010 the company acquired the remaining shares of Stockholm-based portfolio reconciliation provider TriOptima it already didn't own in a deal that enhanced its post-trade services for the derivatives market. It also launched its electronic euro interest rates swaps platform. The previous year, it bought the transactions division of Chicago-based Ocean Tomo and Brazilian broker (and long-time partner) Arkhe DTVM.
Founder and CEO Michael Spencer, who owns about 17% of the company, is also a major donor to Britain's Conservative Party, for which he served as treasurer until 2010. – less