Proposed Acquisition of Liquidnet

The transaction accelerates the delivery of the three pillars of TP ICAP’s strategy – aggregation, electronification and diversification. It represents a transformational opportunity for TP ICAP to diversify its business mix, accelerate the upward shift of its revenue growth profile and improve underlying operating margin.

TP ICAP Group CEO Nicolas Breteau explains the strategic rationale of the transaction.

Transaction Microsite

To access documents relating to the transaction please, visit the dedicated transaction microsite here.

TP ICAP, a leading provider of market infrastructure, today announces the appointment of David Everson as Head of Matchbook Credit, EMEA.

TP ICAP’s Matchbook business is a post-trade risk management solution that helps clients achieve cost efficiencies. David will build on TP ICAP’s growing portfolio of optimisation products to cover Fixed Income and Emerging Markets across EMEA.

David’s experience spans traditional voice and electronic broking, where he has gained an in-depth understanding of trader workflows, changing market structure and regulation. David joins from Tradeweb where he was Head of Credit Sweep Europe; responsible for the day to day running of the European Sweep business and projects including Tradeweb’s all to all anonymous trading protocol, and a Portfolio Trading Tool for the buy-side. Prior to this David spent 10 years at GFI broking both cash and CDS.

Joining David is Rosie Wood. Rosie joins TP ICAP as Matchbook Sales and Liquidity Manager, also from Tradeweb. Rosie brings a wealth of experience in trading connectivity and electronic markets, gained from a variety of positions held at Tradeweb.

Mark Russell, Chief Commercial Officer, Credit at TP ICAP said: “David and Rosie have joined TP ICAP to drive further product development and manage the deeper technical integration with our clients in the credit space. They will grow Matchbook, our risk management solutions business, which was launched to complement our existing credit business and expand the services we offer to our clients.”

About TP ICAP

TP ICAP is a global firm of professional intermediaries that plays a pivotal role in the world’s financial, energy and commodities markets.

Operating through our core businesses, Tullett Prebon, ICAP, PVM, Coex Partners, Tullett Prebon Information, ICAP Information Services and PVM Data Services, we create strong networks in person and through technology. We provide comprehensive analysis and insight into market conditions and long-term trends. We combine data, knowledge and intelligence into contextual insight and commercial guidance. By engaging with our clients, and providing innovative products and services, we enable our clients to transact with confidence, facilitating the flow of capital and commodities around the world, enhancing investment and contributing to economic growth.

Our values of honesty, integrity, respect and excellence underpin everything we do.

Media Contact

TP ICAP  
Harriet Austerberry 
E: harriet.austerberry@tpicap.com
T: +44 (0) 20 3933 3012 

We are delighted to share with you news of an award for our General Counsel, Philip Price. Philip has been named by Legal Business as General Counsel of the Year and has been listed amongst his peers in the Legal Business GC Powerlist 2020 under Leadership and Development.

The Legal Business General Counsel of the Year is the premier award among legal professionals globally, and is the award every GC wants to win. Philip was described in the write-up as the ‘standout choice for this year’s award’. 

This latest achievement tops a successful year for Philip and his team. The award highlights not only Philip’s expertise and leadership, but also an efficient and effective legal function.

Congratulations, Philip!

IDB of Year
To be awarded 'Interdealer Broker of the Year' is a fantastic achievement and a fitting reward for the Group’s strong performance this year. Our strategy of electronification, aggregation and diversification resonated with the GlobalCapital editorial panel who were impressed with our plans to complement our traditional broking business with additional revenues "but without losing sight of the importance of brokers to their model". GlobalCapital recognised that our ambition to expand our offering and move up the value chain in Data & Analytics is underpinned by our leading global broking division. 

The judges commented that TP ICAP is a "very sharp and savvy" organisation which utilises its market share effectively with a unique culture and first rate people. The manner in which we adapted to Covid-19 and remote working was also commended.  

Data & Analytics Vendor of the Year 
A raft of new product launches by the Data & Analytics team helped drive growth at double the rate of the rest of the industry in 2019 and led to GlobalCapital awarding it 'Vendor of the Year'.

The editorial panel was impressed by the volume and variety of our product offering, noting that Data & Analytics had 'outperformed the market, rolling out a broader suite of products in 2019'. Last year the division grew revenues by 11%, more than double 5.4% seen by the wider industry. That momentum has continued into 2020 with first-half revenues climbing 9% as the new products gained traction. Data & Analytics aims to be as a trusted adviser to clients, not just a facilitator of transactions. Listening and responding to client feedback, the team can create platforms tailored to individual client’s needs, thus providing the highest level of satisfaction and security to customers.

More awards
Elsewhere, Tullett Prebon was named FX Derivatives Broker of the Year for the second year in a row and Credit Derivatives Broker of the Year, while ICAP won the Interest Rate Broker of the Year award. 

The GlobalCapital Global Derivatives Awards recognise excellence in the IDB sector. To win five awards, including two at Group level, shows the strength of our offering and the quality of our people. 

Full Breakdown of awards: 

•    Interdealer Broker of the Year- TP ICAP
•    Data & Analytics Vendor of the Year- TP ICAP
•    FX Derivatives Broker of the Year- Tullett Prebon
•    Interest Rate Interdealer Broker of the Year- ICAP
•    Credit Derivatives Interdealer Broker of the Year- Tullett Prebon
 

TP ICAP Group, a leading provider of market infrastructure, today announces the appointment of two senior roles in its Data & Analytics division. Jeff Missimer joins TP ICAP from Bloomberg Polarlake as Head of Sales Americas, while Rhys Spencer has been promoted to Head of Sales Asia. The newly-created roles complete the division’s global sales leadership team, joining Lisa Ward, Head of Sales EMEA, and Jonathan Cooper, Global Head of Sales.

The new hires support TP ICAP Group’s wider strategy to diversify and grow its revenue streams and client base. The team’s immediate focus is to assist clients with their risk management and total cost of ownership using Data & Analytics’ new suite of solutions including its Bond Evaluated Price service and SURFIX market data API.

Jeff’s vast experience, notably in the buy-side and energy and commodities space, aligns with Data & Analytics’ ambitions to grow its offering in these areas. Based in New York, Jeff brings more than 25 years of experience, his most recent position being Head of Sales Americas at Bloomberg Polarlake.

Rhys has been with TP ICAP Data & Analytics for over 10 years, during which time he has built a deep understanding of the firm’s client base and the Asia Pacific region. Based in Singapore, he will be focused on implementing a talent acquisition strategy to establish a team focused on growing revenue from client segments including asset managers and hedge funds.

Jonathan Cooper, Global Head of Sales at TP ICAP Data & Analytics, said:

“Providing clients with insight from our unique data-led solutions is essential in helping them to make better-informed investment decisions and to meet their regulatory requirements. Alongside Lisa, appointing Jeff and Rhys strengthens our global sales coverage, enabling Data & Analytics to better anticipate and meet more of our clients’ needs over time.”

About TP ICAP

TP ICAP is a global firm of professional intermediaries that plays a pivotal role in the world’s financial, energy and commodities markets.

Operating through our core businesses, Tullett Prebon, ICAP, PVM, Coex Partners, Tullett Prebon Information, ICAP Information Services and PVM Data Services, we create strong networks in person and through technology. We provide comprehensive analysis and insight into market conditions and long-term trends. We combine data, knowledge and intelligence into contextual insight and commercial guidance. By engaging with our clients, and providing innovative products and services, we enable our clients to transact with confidence, facilitating the flow of capital and commodities around the world, enhancing investment and contributing to economic growth.

Our values of honesty, integrity, respect and excellence underpin everything we do.

Media Contact
TP ICAP
Laura Whybrow
Email: laura.whybrow@tpicap.com

Commentary on year-on-year performance is on a reported and constant currency basis. Despite the unprecedented macroeconomic backdrop, characterised by the emergence of the COVID-19 pandemic, the Group took rapid and effective action to safeguard its staff and operations. In so doing, the Group delivered continuous service to its clients, essential liquidity to the markets and strong revenue growth.
 
Nicolas Breteau, CEO of TP ICAP plc, said: 
"Against the COVID-19 backdrop, our primary focus has been to protect the wellbeing of our staff and ensure continuity of service excellence for our clients. We achieved this by deploying new technology and workflows that enabled the majority of our staff to work from home while maintaining seamless, global client coverage.

Despite the challenges posed by the pandemic, we have grown revenues and underlying profitability whilst advancing our strategic priorities of aggregating liquidity across our brands, increasing electronification and diversifying our revenue streams. We paid our full year dividend and have declared an interim dividend. Our performance is a testament to our operational strength, scale and diversified business portfolio, as well as the hard work and dedication of our teams.

We will update the market on our strategic priorities and medium-term growth plan at our Investor Update on 8 October 2020."

Response to COVID-19 pandemic

• The Group fundamentally re-engineered its operations during lockdown to maintain continuous global client service and liquidity across all asset classes and desks. 
• Tactical deployment of new digital solutions and new workflows enabled the vast majority of the Group's employees to work from home effectively.
• Re-engineering the business presented significant technological, management and regulatory challenges, coming as it did during a period of extremely high volatility and a sharp increase in volumes.  The Group demonstrated readiness and resilience to continue to serve clients and provide essential liquidity in the markets.
• The Group has not furloughed or reduced its permanent workforce as a consequence of COVID-19, nor has it requested any government aid in any of its global locations.
• The Group paid its final 2019 dividend and has declared an interim dividend for 2020.

The Group increased its underlying profits in the period, despite incurring a £10m charge due to an increase in unused annual leave as at 30 June ("impact from unused annual leave"), as employees chose not to use their annual leave due to the lockdown enforced in most jurisdictions where the Company operates. This charge will reverse in H2 2020 in line with Group policy on holiday carry-forward.

Financial highlights

Underlying (before acquisition, disposal and integration costs, and exceptional items)

Statutory (after acquisition, disposal and integration costs, and exceptional items)

A table showing Underlying and Statutory figures for each period, detailing acquisition, disposal and integration costs, and exceptional items is included in the Financial Review.

The average number of shares used for the basic H1 2020 EPS calculation for the period is 557.3m (H1 2019: 560m).

Operational highlights

• The Group's performance reflected our operational and technological resilience and the benefits of a diversified portfolio.
• Revenue of £990m grew 7% on a reported basis (7% at constant currency).
• Underlying operating profitability was 1% higher (7% higher excluding the impact of unused annual leave, 6% lower on a statutory basis) on higher revenues and tight cost discipline, offset by measured strategic investments.
• Global Broking revenue increased 2% on a reported basis (2% at constant currency), as stronger Rates were partially offset by weaker FX & Money Markets and Emerging Markets businesses.
• Energy & Commodities revenue increased 15% on a reported basis (15% at constant currency) with strong organic growth in oil and non-oil products, boosted by strategic hires and favourable markets.
• Institutional Services revenue increased 50% on a reported basis (50% at constant currency),  as the division benefited from increased client appetite, increased capacity to service new accounts, and strategic hires.
• Data & Analytics revenue increased 9% on a reported basis (8% at constant currency), against a strong prior year comparative period as the business continued to benefit from strategic initiatives to launch new, higher-value products and deeper client relationships.  The minor slowdown reflects some COVID-19-driven reduction in clients' overall spend appetite.

Strategic highlights

• Provided continuous global client service, whilst maintaining strong financial position and liquidity.
• Furthered earnings diversification through continued strong growth in non-Global Broking businesses.
• Expanded our customer base, range of services and geographic profile, especially in our newest divisions.
• Enhanced the synergies and links between our business divisions to maximise cross-selling opportunities.
• Modernised our technology infrastructure by investing in cloud capabilities, enabling the majority of our front-office employees to maintain full working capability remotely. The Group expects that this agility could lead to future property footprint savings, as it will require a smaller number of recovery sites.
• Continued the measured execution of our strategy, investing in core long-term projects aligned to our three defined strategic themes of electronification, liquidity aggregation and diversification.

Dividend

A 5.6p per share interim dividend (2019: 5.6p) will be paid on 6 November 2020 to shareholders on the register at close of business on 2 October 2020.

2020 full year guidance and outlook

• July trading activity has slowed down and is materially lower than 2019 levels. Consequently our full year guidance of low single-digit revenue growth remains unchanged.  We will continue to monitor the impact of the COVID-19 pandemic on TP ICAP and its customers through the remainder of the year.
• The targeted investment spend we guided to in March will be partially deferred as we manage resources prudently in response to the ongoing uncertainty caused by COVID-19. We will prioritise investment projects based on business needs. We aim to invest c£15m of cash  in 2020, of which c£7m will be expensed.

Investor update and redomiciling timetable

• The Group plans to host its Investor Update on 8 October 2020.
• The Group maintains its intention to incorporate a new holding Company in Jersey and the Group is currently in the process of seeking the relevant regulatory approvals.  This has taken longer than originally anticipated due to COVID-19.  The Group will in due course seek shareholder approval and currently expects to post shareholder documentation by the end of 2020 with completion following shortly thereafter.