ICAP Plc is reviewing how to divide its broking unit from its electronic-trading businesses and is cutting jobs as the company adapts to regulations, according to a person familiar with the matter.
The world’s largest broker of transactions between banks hired PricewaterhouseCoopers LLP to review how the businesses could be more clearly separated, said the person, who asked not to be identified because they weren’t authorized to speak publicly. The London-based company fired about 100 brokers as part of a 60-million-pound ($101 million) cost-reduction plan earlier this week, the person said.
ICAP’s profit fell 4 percent in the last fiscal year as low interest rates curbed market volatility and demand for trading. U.S. rules have also pushed unregulated trading of products such as swaps to more transparent electronic platforms, while ICAP’s broking unit was embroiled in probes of rigged benchmark interest rates and fined $88 million in a September settlement with U.K. and U.S. regulators.
The corporate review was reported by the Financial Times today, while Reuters reported the job cuts on June 23.
Interdealer brokers such as ICAP act as a go-between for banks that trade bonds, stocks, currencies, energy and derivatives. They profit when prices fluctuate because more traders use the products they trade.