Citigroup takes equity stake in iSwap
20 December 2012
London, December 20, 2012 – ICAP (IAP.L), the world's leading interdealer broker and provider of post trade risk and information services, announces that Citigroup has taken an equity stake in iSwap Limited. i-Swap is the market leading trading platform for interest rate swaps.
Citigroup has joined as an investing partner and will support the platform with streaming prices, alongside the other shareholding banks Barclays, B of A Merrill Lynch, Deutsche Bank and J.P. Morgan. The potential exists to expand further the number of banks participating in the i-Swap initiative.
As disclosed at ICAP's half year results announced on 14 November 2012, volumes on the i-Swap platform have improved markedly over the past six months. This trend further accelerated in October as electronic trade volumes returned to levels last seen pre-Euro crisis. Volumes in November were broadly similar to October.
Jason Cohen, head of Euro Swaps Trading at Citigroup, said: "We are delighted to have invested in iSwap. In the new regulatory environment dealers are looking for greater automation in certain segments of the market, with increased transparency and lower transaction costs which i-Swap provides. The market is seeing increasing volumes of swaps executed electronically and i-Swap is very well placed to be a market leader in this space."
Michael Spencer, Group Chief Executive Officer of ICAP said: "We welcome Citigroup's participation. We look forward to working together with them and our other partners to launch US Dollar interest rate swaps on the platform in the new year."
Serra Balls Head of Public Relations, ICAP +44 (0)20 7050 7124
Alex Dee Head of Investor Relations, ICAP +44 (0)20 7050 7123
Launched in September 2010, i-Swap is a multilateral trading facility (MTF) for OTC interest rate swap trading. The platform, which is managed by ICAP, is regulated as a MTF by the FSA and is subject to the European Union's Markets in Financial Instruments Directive (MIFID). Following this investment, ICAP will retain 41.3% of iSwap Limited's post-tax earnings.
ICAP is the world's leading interdealer broker and provider of post trade, risk mitigation and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.