TP ICAP Group plc (the “Company” or “TP ICAP”) announces that it will commence a share buyback programme, starting today, of TP ICAP’s ordinary shares of 25p each (the “Ordinary Shares”) for a maximum consideration of £30 million (the “Buyback”), in order to reduce the capital of the Company and/or meet obligations under employee share schemes. Ordinary Shares purchased under the Buyback that are not cancelled will have their rights to dividend receipt waived by the Company.

The Buyback highlights the Board's confidence in the future prospects of TP ICAP, reflects its strong financial position and is consistent with its dynamic capital management strategy. It is being funded by a range of initiatives, following the Jersey re-domiciliation in February 2021, and cash generation.

TP ICAP is cash generative with a prudent capital management framework and the Board believes the Buyback strikes the appropriate balance between the continued and substantial investment in the Company’s organic prospects such as Fusion, Liquidnet Credit, and Parameta Solutions alongside reducing net debt at a time when interest rates are high, and the Company’s clear dividend policy of a 50% pay-out ratio of adjusted post-tax earnings for the year as whole. An interim dividend per share of 4.8 pence, up 7%, will be paid on 3 November 2023 to eligible shareholders. 

In addition to the Buyback, we are also pleased to report that we have freed up £100 million of cash to pay down debt six months ahead of schedule. 

Subject to the Company’s balance sheet and business investment opportunities, the Board will continue to assess opportunities to free up cash and pay down more debt, and/or return further capital to shareholders.

Any share purchases will be made by the Company within certain pre-set parameters and in accordance with the general authority of the Company to repurchase shares granted by shareholders at the Company’s Annual General Meeting held on 17 May 2023, which permits the Company to purchase no more than 78,867,093 ordinary shares (or 10% of the issued share capital). 

The Buyback will be conducted in compliance with Chapter 12 of the Financial Conduct Authority's Listing Rules and with European Union (EU) Regulation No 596/2014 ("MAR") and the MAR buyback technical standards (Commission Delegated Regulation (EU) 2016/1052) (the "Technical Standards"), both of which form part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018. 

The Company will initially rely on the safe harbour conditions for trading set out in Article 3(2) and Article 3(3) of the Technical Standards. However, if the safe harbour conditions were to constrain the Company’s ability to purchase the Buyback within the targeted timeframe given, for example, share illiquidity, the Company may subsequently decide and announce its intention to trade outside of the safe harbour conditions. 

The Company has entered into an agreement with Peel Hunt LLP (“Peel Hunt”) under which it has issued irrevocable instructions to Peel Hunt to manage the Buyback as “matched” principal. Peel Hunt will carry out the Company’s instructions through the acquisition of Ordinary Shares for subsequent repurchase by the Company. This arrangement is in accordance with Chapter 12 of the UKLA Listing Rules and the Company’s general authority to repurchase Ordinary Shares. Peel Hunt will make its trading decisions under the Programme independently of, and uninfluenced by, the Company.Purchases may therefore continue during any closed periods of the Group. 

Peel Hunt will undertake transactions in Ordinary Shares on any available trading venue or on an over-the-counter basis in order to execute the Buyback. Disclosure of such transactions will not be made by Peel Hunt as a result of or as part of the Buyback, but Peel Hunt will continue to make any disclosures it is otherwise legally required to make.

Details of any and all purchases made under the Programme will be provided via RNS announcements by no later than 7.30 a.m. on the business day following the calendar day on which the purchase occurred and also published in the regulatory news section of the Group's website.

Forward looking statements

This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company’s actual future results may differ materially from the results expressed or implied in these forward-looking statements.
 

Enquiries:

Analysts and investors

Dominic Lagan
Direct: +44 (0) 20 3933 0447
Email: dominic.lagan@tpicap.com

Media

Richard Newman
Direct: +44 (0) 7469 039 307
Email: richard.newman@tpicap.com

About TP ICAP

• TP ICAP connects buyers and sellers in global financial, energy and commodities markets. 
• We are the world’s leading wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. 
• We operate from more than 60 offices across 28 countries, supporting brokers with award winning and market-leading technology

Parameta Solutions, a world-leading provider of Over the Counter (OTC) market and transactional data, and General Index (GX), the world’s first technology-driven benchmark provider, are pleased to announce the launch of a new liquified natural gas (LNG) pricing service that will offer robust and transparent daily benchmarks to better enable trading between major LNG hubs.  

Powered by data from TP ICAP’s leading Energy & Commodities desks, Parameta Solutions’ waterfall methodology is implemented using GX’s leading benchmark technology. The Parameta Solutions Global LNG Basis Indices will offer an alternative tech-led approach to traditional journalistic price assessments. With GX acting as the independent regulated benchmark administrator, the indices will be available for use for price discovery purposes, as the underlying reference rate in financial contracts and in the clearing and settlement process.

Ovie Koloko, Chief Product Officer, Parameta Solutions:

“As the world continues along the path to net zero, LNG has emerged as the key balancing fuel that market participants are using to accelerate their progression. The market for this product has expanded, with volumes increasing as a result of geopolitical pressures on supply chains. As a result, what was once a niche, localised market is now a truly global one. Therefore, this collaboration to create a suite of benchmarking tools is necessary to help participants manage their risk more effectively.”

Neil Bradford, CEO, General Index:

"There is a natural fit between an OTC trade data provider and an independent benchmark provider. This innovative partnership brings new transparency and choice to the LNG market, and we believe it will be the first of many collaborations between our firms.”

                                                                           ENDS

For more information on Parameta Solutions, visit https://parametasolutions.com/. 

Parameta Solutions is the Data & Analytics division of TP ICAP Group. The business provides clients with unbiased OTC content and proprietary data, in-depth insights across price discovery, risk management, benchmark and indices, and pre and post-trade analytics. Its post-trade solutions offering helps market participants control their counterparty and regulatory risks through a growing range of tools that manage balance-sheet exposure, as well as compression and optimisation services. The Data & Analytics division includes the following brands: Tullett Prebon Information, PVM Data Services, ICAP Information and Burton-Taylor Consulting.

Press Contact

Tim Focas – Aspectus Capital Markets

tim.focas@aspectusgroup.com

+44 (0) 7835-517-004

Brad Starr – Aspectus Capital Markets

Bradley.starr@aspectusgroup.com

+44 (0) 7880-254-130

About General Index:

General Index brings robust, reliable price transparency to global markets. As the world’s first technology-led benchmark provider, General Index aggregates trade data to build a full view of market activity, and then applies algorithmic index methodologies consistently, accurately and without subjective judgement. General Index is authorised by the UK’s Financial Conduct Authority (FCA) as a benchmark administrator and complies with EU and UK Benchmark Regulation. 

For more information on General Index, visit general-index.com

Press Contact

Andrew Wheeler

Marketing Manager

awheeler@general-index.com

+44 (0) 7590587377

Please note that the Credit Default Swaps Option section of the Credit rate card for the ICAP UK OTF has been updated and takes effect from August 1st. For more information please visit the ICAP UK OTF Venue Page.

Capitalised terms used in this Market Notice shall have the meaning ascribed to them in the ICAP UK OTF Rulebook.

Please direct any questions regarding this Market Notice to:

Email: tpsotfoperator@tpicap.com

Post: TP ICAP Broking Limited, 135 Bishopsgate, London EC2M 3TP, United Kingdom.