Icap shuts London weather desk
UK inter-dealer broker Icap has exited the European weather and environmental derivatives market, an Icap spokesman told RiskNews ' sister publication EPRM today. “The European markets for these products are not developing at a large enough rate to warrant commitment,” he said.
Although Icap has left the markets in Europe, the broker still offers US weather and environmental products through its subsidiary APB Energy. In October 2002 Icap bought Kentucky-based APB for an initial cash payment of $15.5 million, with further payment contingent on the future earnings of the business. APB offers gas, electricity, weather, environmental and coal derivatives on its online platform, True Quote, and through traditional voice brokering.
Other desks within Icap’s energy business, particularly UK electricity, oil and oil products, have witnessed increasing business over the past year, the spokesman said, adding that the APB integration has proved successful since there were no overlaps of businesses.
Earlier this week Icap reported a 39% rise in profits to £123.7 million for the year ended March 31. The firm’s turnover rose 26% to £664.3 million as the firm thrived on market volatility, especially in medium-term interest rate markets. Deteriorating credit also boosted Icap’s credit derivatives dealing business.
The broker also estimated the global inter-dealer market for over-the-counter derivatives, fixed income, money market products, foreign exchange, energy, credit and equity derivatives grew by around 10% last year, generating revenues of $4.3 billion. Icap claims a 23% share of that business.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Commodities
Energy Risk 2024 Software Rankings: IT demands increase amid rising risk
Heightened geopolitical and credit risk increase requirements on commodities software
Energy Risk Asia Awards 2023: the winners
Winning firms demonstrate resiliency and robust risk management amid testing times
ION Commodities: addressing the market’s recent pain points
Energy Risk Software Rankings winner’s interview: ION Commodities
Energy Risk Commodity Rankings 2023: adapting to new market dynamics
Winners of the 2023 Commodity Rankings provided reliability when clients faced extreme change
Energy Risk Software Rankings 2023: managing uncertainty
Unpredictable markets make CTRM software choices key
Navigating the volatility and complexity of commodity markets
Commodity markets have experienced significant challenges since the Covid-19 pandemic, the conflict in Ukraine and the subsequent sanctions imposed on Russia. These unprecedented events have caused fluctuations in supply and demand, disrupted global…
Energy Risk Asia Awards 2022
Recognising excellence in energy risk management
Market shrugs off EC’s plan to change gas benchmark
Dutch TTF prices unmoved, as market participants say they are “not taking it seriously”
Most read
- Top 10 operational risks for 2024
- Japanese megabanks shun internal models as FRTB bites
- LCH issued highest cash call in more than five years