Thoughts on ICAP – Tulletts discussions


The discussions between Tulletts and ICAP whereby Tulletts will buy ICAP’s global broking business is a great move on the part of ICAP. They will offload the high cost, low margin global broking voice business, and focus on the high margin and growing electronic broking (EBSBrokertec) and post trade services (including Traiana and TriOptima) divisions.

Update 11 Nov: Tullett confirmed acquisition of  ICAP’s Global Broking Business for £1.1bln here

Looking at these two slides from their last investor presentations shows the stark contrast between the two divisions. Electronic Markets & Post Trade Services accounts for 75% of trading profits, with ~ 40% margins, and only 28% of the headcount.

 

ICAP Business Mix

 

ICAP headcount

ICAP Investor Presentations May 2015

Previous post on ICAP strategy here

One Response

  1. K

    Sent from my iPhone

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