ICAP Launches UK SEF

  ICAP Launches UK SEF

           IGDL, the first global SEF, regulated by the CFTC & FCA

Business Wire

LONDON & NEW YORK -- May 15, 2014

ICAP plc (IAP.L), a leading markets operator and provider of post trade risk
mitigation and information services, announces today that its UK subsidiary,
ICAP Global Derivatives Limited (IGDL), has officially launched having
received temporary Swap Execution Facility (SEF) approval from the US
Commodity Futures Trading Commission (CFTC). IGDL is the first global SEF and
Multilateral Trading Facility (MTF), regulated by both the CFTC and the UK
Financial Conduct Authority (FCA).

Laurent Paulhac, CEO of the ICAP SEF, said: “The launch of IGDL is an
important initiative for our clients and our markets, mitigating the risk of
liquidity fragmentation. With this dually regulated entity, market
participants from all key jurisdictions can participate in the same global
liquidity pool for our G3 rates products. In conjunction with this launch, we
are rolling out our next generation voice Request for Quote (RFQ) protocol,
called vRFQ 2.0, delivering voice execution services to our clients that are
specifically designed to be compliant with UK and US regulations. vRFQ 2.0 is
powered by technology innovation enabling our voice execution services to work
seamlessly with i-Swap, our interest rate swap (IRS) electronic execution
platform.”

IGDL allows ICAP to bridge the CFTC’s SEF rules with financial services
regulation of the United Kingdom and European Economic Area (EEA), as a UK
incorporated entity authorised and regulated by the FCA as well as registered
as a SEF with the CFTC. The CFTC registration is in addition to IGDL’s UK
regulatory permissions, which include the ability to operate a MTF, allowing
the Group to take advantage of the MiFID passport regime for EEA liquidity.
IGDL is also authorised to provide direct access to customers in the EEA and
Canada (Ontario).

Peter Best, COO of the ICAP SEF, added: “With mandatory swaps trading now a
requirement for many market participants across multiple asset classes, ICAP
is committed to offering its customers market-leading execution solutions that
manage their swap risk in a fully compliant manner.IGDL is the result of
ICAP’s commercial, legal, regulatory, technology, and operational teams
together focusing on delivering an unparalleled trading experience and
multi-jurisdiction-compliant platform in response to client needs and
expectations.We have consulted heavily with our major clients in the process
and look forward to continue to be a trusted partner for all market
participants now and in the years ahead as the marketplace adapts to a
regulated trading environment, and we want to thank our customers sincerely
for their support and confidence during this initial phase of the process.”

By registering to be a SEF with the CFTC, IGDL can provide direct access to
market participants in both the US and EEA in a manner which satisfies SEF
transaction level requirements and EEA regulatory rules via its electronic
order books and US and London based voice swap execution specialists. IGDL,
available to all market participants, integrates i-Swap, ICAP’s award-winning
electronic interest rate platform, with vRFQ 2.0, allowing for the broadest
and most efficient facilitation of liquidity.

IGDL will initially focus on G3 Rates, including USD, EUR and GBP - IRS, OIS,
FRAs, IROs, Swaptions, Inflation and Exotic Swaps and Options. All other
products and instruments will continue to be serviced on ICAP's existing US
SEF, ICAP SEF (US) LLC. ICAP intends to migrate more products to IGDL and will
seek additional permissions with relevant regulators to operate the IGDL SEF
in more jurisdictions, such as countries in the Asia-Pacific region.

About IGDL

ICAP Global Derivatives Limited (IGDL), a subsidiary of ICAP plc, is ICAP’s
UK-based MTF and SEF. The company is authorised and regulated by the UK
Financial Conduct Authority (FCA) as well as registered as a SEF with the
CFTC. The dual registration includes permission to operate a multi-lateral
trading facility (MTF). IGDL allows reconciliation with the CFTC’s SEF rules
with financial services regulation of the United Kingdom and European Economic
Area. For more information, please go to www.icap.com/sef.

About the ICAP SEF US

ICAP SEF (US) LLC, a subsidiary of ICAP plc, operates markets for interest
rate swaps (IRS), credit default swaps (CDS), equity derivatives, commodities
and NDFs (non-deliverable forwards). The ICAP SEF offers a venue for trading
in cleared and uncleared swaps and operates central limit order books (CLOB)
and request for quote (RFQ) systems, as well as offering block trade
capabilities, electronic crossing and execution via brokers. The ICAP SEF is
headquartered in Jersey City, New Jersey. For more information, please go to
www.icap.com/sef.

About i-Swap

i-Swap is ICAP's award-winning electronic trading platform for OTC interest
rate derivatives, offering continuous streaming support across Euro and USD
Interest Rate Swaps. i-Swap's automated matching model and implied strategy
trading functionality allows ICAP to enhance its electronic liquidity through
improving prices by linking liquidity in underlying swaps to liquidity in
strategy orders such as spreads, butterflies, and spread-overs.

About ICAP

ICAP is a leading markets operator and provider of post trade risk mitigation
and information services. Group companies provide services that match 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,
please go to www.icap.com.

Contact:

ICAP plc
Serra Balls, +44 (0) 20 7050 7103
ICAP Group Head of Communications
or
Guy Taylor, +1 212 341 9759
ICAP Communications US
 
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