ICAP lands $65 million deal with CFETS amid Chinese expansion

China Foreign Exchange Trading System has chosen ICAP’s EBS BrokerTec platform for FX, bonds and derivatives trading.

China’s interbank trading platform and infrastructure provider, China Foreign Exchange Trading System (CFETS) has chosen ICAP’s EBS BrokerTec for fixed income, derivatives and FX electronic trading.

The deal is valued at $65 million over a three-year period, and will see ICAP’s EBS BrokerTec establish an office and ‘development centre’ in Shanghai.

Following ICAP’s recent transaction with Tullett Prebon for its global hybrid voice broking business, the deal with CFETS will see the markets operator expand into China.

ICAP claimed CFETS chose EBS BrokerTec due to its “established and robust infrastructure capabilities, unique seamless and integrated trading technology and proven innovation.”

ICAP and CFETS have a nine-year history, forming CFETS ICAP and working together to provide broking and information services for the FX, bonds and derivatives markets.

Michael Spencer chief executive officer at ICAP said China is “an extremely important financial market”, adding the collaboration “will play a key role in the future of the Renminbi.”

Gil Mandelzis, chief executive of EBS BrokerTec said ICAP will work with the CFETS, “to shape market development in the Chinese FX and fixed income trading markets.”

Xu Zaiyue, executive vice president of CFETS concluded: “The introduction of technology from EBS BrokerTec is an important part of CFETS ‘Next Generation Trading System’ (NGTS) project.”