In the presentation, Breteau emphasised that onboarding buy-side firms was a notable barrier to entry for new offerings in the fixed income space. “Together we are confident in our ability to add value to the existing market structure.” “Liquidnet brings 500 clients already connected, they bring the algo portal and blotter sync technology,” he noted. Bringing the two businesses together not only TP ICAP has strong sell-side relationships and data assets, which will be complimented by Liquidnet’s assets.
This has pushed buy side traders toward electronic platforms as a way of improving search efficiency, and to help them document that process and demonstrate best execution, he said. But it means that the search costs have increased for the buy side.” It doesn’t mean that the trading has declined, because it has not. “Dealers now hold much less inventory than they used to a decade ago and they do not provide immediate pricing like they used to, as a consequence of that. “One of our areas of immediate focus will be to build up a market leading dealer-to-client offering,” said Breteau. TP ICAP wants to expand the platform’s capabilities in the dealer-to-client (D2C) space, stepping into the ring with Bloomberg, MarketAxess and Tradeweb. Liquidnet has consistently been the fourth largest corporate bond market operator in The DESK’s ‘Trading Intentions Survey’ which measures buy-side users of electronic trading platforms. So it’s fair to say that Liquidnet has a privileged insight into its client’s blotters.” “With Blotter Sync Liquidnet directly accesses the buy side trader’s blotter, pulling orders into its liquidity pools, rather than the trader having to take an active decision to trade. “An excellent example of both trust and innovation is its Blotter Sync technology,” he said. He was also careful to stress that the existing relationship between the platform and buy-side clients was firmly based on trust, a point that will not be lost on asset managers who have previously seen service providers acquired without similar care being given.
In a presentation to investors and analysts on 9 October 2020, he crucially supported continuation of the platform’s client-to-client trading model and its new primary market offering, both points of concern amongst buy-side traders when the deal was first announced. The ICAP yen brokers, the report continues, made false reports to assist the senior yen trader at UBS (and later at another banlc) in his nearly constant efforts to manipulate Yen LIB OR to benefit his Yen derivatives trading positions that were valued based on the Yen LIB OR fixings.0 Shares Nicolas Breteau, CEO of TP ICAP.īroker dealer TP ICAP has agreed to buy block-trading market operator Liquidnet, with Nicolas Breteau, CEO of TP ICAP, putting the growth of Liquidnet’s fixed income business front and centre in the deal. The US Commodity Futures Trading Commission‘s report breaks down how ‘ ICAP brokers disseminated false and misleading suggested LIBORs in an effort to manipulate yen LIBOR to benefit panel banks, at times successfully’. In December 2012, UBS agreed to pay a USD$1.5bn penalty to UK and Swiss regulators for its part in the Libor fixing scandal. IEL Brokers’ misconduct risked undermining the integrity of the JPY LIBOR benchmark reference rate.’ Regulators in the US and UK have fined Icap Europe Limited, a brokerage firm, US$87m for ‘manipulation, attempted manipulation, false reporting, and aiding and abetting derivatives traders’ manipulation and attempted manipulation, relating to the London Interbank Offered Rate (LIBOR) for Yen.’ The real juicy details of emails and messages sent by employees of the brokerage revealed in the regulators’ reports on both sides of the Atlantic, throw the much talked about culture of compliance into sharp relief.Īccording to the Final Notice from the UK’s Financial Conduct Authority on the fie imposed on Icap Europe Limited (IEL), the firm ‘through its Brokers, colluded with traders at UBS AG (“UBS”) as part of a co-ordinated attempt to manipulate JPY LIBOR submissions made by Panel Banks.
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