ICAP mulling spin-off of electronic trading arm EBS-BrokerTec, rumours say

The FTSE 250 company's management have been mulling the split and, according to sources cited by Bloomberg, have recently discussed the separation with clients and potential advisers.

The spin-off would separate the fast-growing electronic trading operations from the legacy business that handles client trades over telephone.

Last December, ICAP meshed electronic foreign-exchange (FX) trading platform EBS and electronic fixed-income trading platform BrokerTec together to form one unit.

The two platforms offer trading solutions to more than 3,300 customers in over 50 countries across a range of instruments including spot FX, US treasuries, European government bonds and EU and US repo.

The combination of the two business was to allow ICAP to leverage BrokerTec’s market leading platform, client relationships and strong team, with EBS’s technology and innovation pipeline, "to deliver unique products and services to the industry and expand the addressable market of both platforms".

Michael Spencer, ICAP group chief executive, became chairman of the unit, with EBS chief Gil Mandelzis made CEO of the combined business.