UK Country Report 2016

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Discovery Reports

Unity in strength: Tullett Prebon and ICAP join forces to raise the bar in OTC markets

Acquisition strengthens firm’s position as the partner of choice of institutions, corporations and governments in the wholesale financial and energy sectors

PUBLISHED : Tuesday, 25 October, 2016, 11:08am
UPDATED : Tuesday, 25 October, 2016, 11:08am

Country Business Reports interviews and articles by Discovery Reports

Set to raise the bar in the global financial market, Tullett Prebon and ICAP, two of Britain’s largest interdealer broking powerhouses, are joining forces to provide clients with leading-edge and comprehensive coverage of over-the-counter (OTC) markets, supported by best-in-class risk management and compliance infrastructure.

With the acquisition of ICAP’s global broking and information business, Tullett Prebon strengthens its position as the partner of choice of institutions, corporations and governments in the wholesale financial and energy sectors.

“The acquisition will strengthen Tullett Prebon’s central role in sourcing and pricing liquidity across the OTC spectrum and increase our resources to tap the many opportunities to provide our services to a range of participants,” says chief executive John Phizackerley.

The integration of ICAP’s global broking and information business also broadens Tullett Prebon’s already expansive geographical reach, with additional offices in Malaysia and New Zealand.

The firm offers broking services in fixed-income securities and their derivatives, interest-rate derivatives, treasury products, equities and energy and commodities to clients such as commercial and investment banks, corporates and asset managers.

Through its OTC data business, Tullett Prebon also provides independent real-time price information and analytics on the global OTC financial and commodity markets.

Much of the financial services sector is undergoing significant change. This gives us potential for innovation
John Phizackerley, chief executive of Tullett Prebon

Tullett Prebon combines the efficiency of technology with the valuable insights of its team of brokers. The company offers clients a variety of transaction methods depending on their preference. Clients can transact through voice brokers who provide market insight, intelligence and knowledge gained from a long history in the sector. Clients can also opt for an electronic platform, whether through a central limit order book, a volume matching session, a request for quote service or via the post-trade bulk risk mitigation service.

Another option is a hybrid service, which provides access to the screen and the broker. This offers clients the best of both worlds: intelligence and context of the situation from the broker, with the speed, transparency and convenience of
a screen.

“We see our integrated technology as an important element of our offering to clients, letting them transact with us securely and confidently,” Phizackerley says. “We continue to invest in the technological assets to ensure we have robust and resilient platforms and to increase the speed and efficiency of price dissemination.”

Given the dynamic nature of the financial market, the company is quick to adapt and evolve its services to offer clients the best solutions. Augmenting its comprehensive product portfolio, Tullett Prebon established its alternative investments business to provide hedge fund and private equity liquidity solutions.

“Much of the financial services sector is undergoing significant change,” Phizackerley says. “This gives us potential for innovation.” For example, the firm has launched a new execution solution for Asian credit instruments through its auction platform and central limit order book. “We see our scope to continue to grow, adding enhanced capabilities in products such as power, gas and emissions, building on the power of our brands and client networks,” Phizackerley says.

Serving clients from more than 50 countries, Tullett Prebon sees Asia becoming increasingly important as the region’s economies and financial sector expand. Believing that local presence is essential in a culturally diverse region such as Asia-Pacific, the firm has offices in Singapore, Hong Kong, Tokyo, Seoul, Bangkok, Jakarta, Manila, Mumbai, Shanghai and Sydney.

“We are one of the world’s leading OTC brokers,” Phizackerley says. “Our focus is exclusively on execution excellence and getting the right outcome for our clients. Our goal is to be the world’s most trusted source of liquidity in hybrid OTC markets and the best operator in hybrid voice broking.”


Tullett Prebon