Icap to take on Prebon's rate derivatives team in Sydney

Icap plans to hire the Sydney-based interest rate derivatives team at Prebon Group, a rival inter-dealer broker that was bought by Collins Stewart Tullett in October 2004.

The London-based financial services group had decided not to merge the two legacy trading teams. Details of the deal have not yet been released.

The move is the latest development in Icap's efforts to rebuild its Australian operation after BGC Partners - the voice brokerage unit of New York-based Cantor Fitzgerald - nabbed 20 of its staff back in February 2005. A temporary desk closure followed the departure. Icap then reopened its futures desk in May, having hired Simon Watkins as Head of Futures Broking in Australia and a dozen other staff.

Icap had sought a six-month injunction against BGC, arguing that BGC had induced Icap employees to breach their employment contracts and had some involvement in the employees breaching their fiduciary responsibilities. The injunction was not granted. Legal proceedings are ongoing.