TP ICAP Partners with Credit Benchmark to Provide Credit Proxy Solution

TP ICAP, the largest interdealer broker in the world, announced on Thursday that its Data & Analytics (D&A) unit has formed a new partnership with Credit Benchmark, an analytics company.

Credit Benchmark is currently the largest single source of credit data for both rated and un-rated entities. The financial data company serves as an alternative source of credit risk and scores around 22,000 counterparties throughout the world.

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As a result of the partnership, TP ICAP D&A will create a credit proxy solution. This will combine market pricing with Credit Benchmark ratings. This will give its customers access to price discovery, xVa, trading and risk management capabilities, the statement said.

TP ICAP To Supply Data to Research Credit Risk

Furthermore, the collaboration will also see TP ICAP providing Credit Benchmark with data from its Tullett Prebon Information (TPI) business. This data will go towards research into the relationship between real world and risk neutral credit risk. This data will be distributed directly and will be available through TPI.

Commenting on the partnership, Bill Haney, CEO of Credit Benchmark said: “We are pleased to be supporting TP ICAP’s D&A team in enhancing their sector-level credit risk offerings.”

“Not only will this partnership greatly expand the breadth and depth of TP ICAP’s coverage, it will enable Credit Benchmark to broaden the reach of our analytics product offerings. We look forward to working closely with TP ICAP on continued innovations in the credit risk analytics space.”

Ovie Koloko, Global Head of Product Development for Data & Analytics at TP ICAP, added: “there is an opening in this market and we see our existing credit data sales business as a potential area of growth.

“Credit Benchmark’s business model provides a broader and more timely assessment than traditional rating methods. We plan on developing solutions that assist firms with regulations such as FRTB and the addition of Credit Benchmark’s analytics will enable us to better meet the needs of our clients. We look forward to building on our existing relationship.”

TP ICAP In Takeover Talks with Axiom Commodity Group

The partnership with Credit Benchmark follows on from the rumors that TP ICAP is reportedly in advanced talks to buy US-based Axiom Commodity Group, as Finance Magnates reported. With TP ICAP set to report its third-quarter results on Friday, the deal could be announced as soon as this week.