ICAP to become NEX after Tullett deal completes

Sale will see Tullett take control of ICAP brand with new electronic and post trade business to be branded NEX Group.

ICAP is to rebrand itself as NEX Group, with the former brand being taken over by Tullett Prebon as part of the sale of ICAP’s voice broking business.

The news comes as ICAP reveals it saw a fall in revenues and profits in its last financial year.

ICAP will trade as NEX Group from day one following the completion of the sale of its global hybrid voice broking business to Tullett Prebon, transferring the ICAP name. The deal is expected to complete before the end of 2016.

The new group will focus entirely on electronic markets and post-trade business. ICAP said it will be well placed to meet changing customer requirements and better positioned to enter new market segments and innovate.

In particular, it hope to “benefit from the increased demand made by regulators for post trade risk mitigation and electronic trading.”

Commenting on the rebrand, Michael Spencer, CEO of ICAP, said: NEX Group plc will be a fast moving, entrepreneurial pure electronic and post trade leader, well positioned for growth. We wanted a name to truly reflect this and which was truly global. NEX Group plc does this. I am very excited about our new name and very excited about the future.”

The news comes as the interdealer broker reveals it has a difficult twelve months in it last financial year, which ended 31 March.

Revenues fell 5.9% from £1.27 billion in 2014/15 to £1.2 billion in 2015/16. Before tax profits fell by a similar degree to £89 million.

Challenging trading conditions were cited by Spencer, who said: “Trading conditions continue to be challenging as a result of the macro economic environment, historically low and negative interest rates and continued bank deleveraging. These headwinds have naturally impacted our performance during the year.”

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