Aug. 16 (Bloomberg) -- ICAP Plc, the world’s biggest interdealer broker, will start a single global voice broking division, combining its three regional operations to adapt to changing regulations.
The merged unit will be run by David Casterton, most recently head of the European voice business, London-based ICAP said in a statement today. Three regional heads will report to him: Hugh Gallagher for Asia Pacific, Gary Smith for Europe and Dan Flannery for the Americas, the company said. The move takes effect on Sept. 1.
The changes “will give us a clear global structure that will ensure our continued success and enable us to serve our existing and potential customers on a worldwide basis,” Michael Spencer, ICAP’s chief executive officer, said in the statement. “The markets we operate in are undergoing unprecedented change.”
ICAP, which is cutting costs to bolster profit as the European debt crisis crimps transactions on its foreign-exchange and fixed-income trading platforms, also runs its electronic and post trade divisions on a global basis. It’s also dealing with changing worldwide regulations, including the Dodd-Frank Act in the U.S., which is changing the way banks and brokers trade and clear derivatives.
“Significant regulatory changes such as Dodd-Frank will change the structure of the over-the-counter markets.” said Richard Perrott, an analyst at Berenberg Bank in London. “In the future there will be a greater level of electronic trading infrastructure, and it makes sense to look to adapt to the changes.”
ICAP also said that Doug Rhoten, CEO of its Americas unit, will become chairman of ICAP Americas to lead the firm’s response to regulatory changes. He will also have responsibility for the Brazilian unit.
To contact the reporter on this story: Ambereen Choudhury in London at email@example.com
To contact the editor responsible for this story: Edward Evans at firstname.lastname@example.org