ICAP Hires Nasdaq Executive Amid Bond, Currency Trading Revamp

ICAP Plc is revamping the management of EBS BrokerTec after saying it would combine its electronic currency and fixed-income trading businesses last year.

Dan Cleaves and Darryl Hooker will jointly run a new division called EBS BrokerTec Markets, the London-based broker dealer said in a statement on Thursday. Phil Harris, previously of Nasdaq OMX Group Inc. and foreign-exchange platform 360T, becomes head of EBS Market.

ICAP faces new competitors in currency trading as stock exchanges make inroads into the world’s largest asset class. Equity-market operators have bought two foreign-exchange venues this year: Hotspot FX and 360T. Broker dealers such as ICAP are also suffering as their bank customers scale back trading operations.

“Both EBS Market and BrokerTec Market are critical to the long-term growth of our business,” Gil Mandelzis, chief executive officer of EBS BrokerTec, said in the statement. “By combining them into one central-limit order book business division, we are leveraging the strong synergies in technology, operations and sales.”

Cleaves was previously CEO of bond-platform BrokerTec’s North America business, while Hooker was global head of EBS Market.

While ICAP is the world’s largest broker of transactions between banks, it’s increasingly diversifying into electronic markets and post-trade businesses. Electronic platforms such as ICAP’s BrokerTec and Nasdaq’s ESpeed dominate Treasury trading between dealers.

ICAP CEO Michael Spencer has said the company’s BrokerTec venue accounts for more than 60 percent of Treasury trading.

Volume on the venue increased 7 percent to $172 billion in the three months through June, while volume on the EBS currency platform jumped 34 percent to $98 billion.

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