UK-headquartered Tullett Prebon, one of the world’s leading interdealer brokers, today entered into an agreement with Intercontinental Exchange (NYSE: ICE), a global network of exchanges and clearing houses, to acquire certain U.S. voice brokerage operations of Creditex. The terms of transaction were not disclosed and the transaction is subject to approval from the Financial Industry Regulatory Authority (FINRA).
Based in New York, Creditex is a leading interdealer broker for credit default swaps (CDS) and bonds, operating a hybrid model of voice and electronic execution, which allows market participants to trade based on their requirements.
Creditex, which was the first interdealer broker to offer electronic CDS trading in 2004, will utilise Tullett Prebon’s functionally rich platform, tpCREDITDEAL, to complement its expertise and enhances the ability to secure optimal outcomes for customers.
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Tullett Prebon signals further expansion
In terms of Tullett Prebon’s benefits, the step adds to the company’s deep pool of broking expertise, ahead of its anticipated acquisition of the ICAP global hybrid voice broking and information business later this year.
ICE will retain the electronically traded markets and systems, post-trade connectivity platforms and intellectual property of Creditex, which serves the global credit default swaps (CDS) market.
Commenting on the news, Krishan Singh, President of ICE Swap Trade, said: “After developing the solutions to enable the CDS market to become increasingly standardized, electronic and cleared, we are organizing our global credit derivatives operations around the areas best aligned with our strengths across clearing, data and technology.”
“Tullett Prebon is a strategic buyer and leading operator of brokered OTC markets that will enable the team to transition seamlessly while providing continuity of service to our voice brokerage customers. We are excited about continuing to grow Creditex’s innovative electronic trading and related technologies, along with our CDS clearing offerings in response to customer requirements,” he added.