ICAP, an interdealer broker, says it experienced record transaction volume across its electronic broking platforms in 2007. Average daily electronic volume in 2007 exceeded $806 billion, a 27% increase year-on-year.
Spot FX on ICAP’s electronic currency platform EBS reached an average daily volume of $182 billion in 2007, an increase of 28% over 2006’s $143 billion, as volatility in the currency markets and increased algorithmic trading activity continued to drive the growth of foreign exchange as an asset class.
Electronic trading of fixed income products via ICAP’s BrokerTec platform also hit record levels. Average daily volume of transactions involving US Treasury products, European repos and US repos was $614 billion in 2007, a 26% increase year-on-year.
ICAP made several enhancements to the EBS system in 2007, including processor upgrades and more complex streaming data feeds, which the company says have resulted in faster average deal times. In 2007, ICAP also upgraded the BrokerTec matching engine hardware, developed more efficient API broadcasts for additional performance and enhanced the market data offering with more frequent distribution.
“While the record volumes in 2007 are evidence of increased volatility in the markets, they also reflect a change in the way trading is done,” said David Rutter, deputy CEO of ICAP Electronic Broking. “Electronic broking has improved the efficiency with which the market is able to execute trades through both technological advancements and lower trading costs. Our customers should expect continued platform enhancements from ICAP.”