TP ICAP Group rolled out an electronic trading platform for structured products, addressing a gap that has frustrated investors for years: the lack of a transparent secondary market for these complex instruments.
The Alternative Trading System, called TP ICAP Fusion Structured Products Trading Systems, represents the first electronic venue specifically designed for secondary trading of structured products in the United States.
The platform connects issuer banks, distributors, wholesalers, registered investment advisors, and broker-dealers through a centralized order book with real-time request-for-quote functionality.
Fragmented Market Gets Centralized Venue
Structured products have faced persistent liquidity problems in the secondary market, largely due to their complexity and customized nature. Finding buyers for these instruments has been challenging because each product is typically tailored to specific investment objectives, creating what market observers call "orphaned" positions when investors need to exit before maturity.
Robert Romano, Head of Structured Products for the Americas at TP ICAP, said the platform "enhances the secondary market by introducing an electronic trading environment, streamlining operations for the industry and enabling market participants to access new trading opportunities."
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The platform offers anonymous execution alongside detailed reporting and audit trail capabilities, according to the company's announcement. Market participants can view aggregated RFQs and available pricing from multiple sources in what TP ICAP positions as a single electronic marketplace.
TP ICAP Pushes Electronification Across Asset Classes
The structured products launch adds to TP ICAP's broader push into electronic trading infrastructure. Last month, the company acquired Vantage Capital Markets to expand its Asia-Pacific presence, though financial terms weren't disclosed. The deal, expected to close in the second quarter of 2026, brings offices in London, Hong Kong, Tokyo, and Dubai under TP ICAP's umbrella.
The London-based interdealer broker has been investing heavily in its Fusion platform technology. Last year, TP ICAP brought on 45 former Amazon engineers to develop the Fusion infrastructure, which now spans multiple asset classes.
The company's data division, Parameta, also launched a real-time service covering over $100 billion in daily physical oil trading in October 2025.
However, not all divisions are performing equally. TP ICAP reported £1.78 billion in revenue last year, but the numbers masked difficulties in its commodities trading unit, where talent losses offset gains in other markets.
ATS Model Expands Beyond Equities
Alternative Trading Systems operate as broker-dealers rather than traditional exchanges, matching buyers and sellers without the full regulatory burden of an exchange . They're particularly useful for large-block trades that could otherwise move market prices.
The ATS structure has been applied to various markets over the years. tZERO launched an SEC-compliant ATS for ICO trading in partnership with RenGen and Argon Group, while Atlas ATS introduced a platform for cryptocurrency options using FIX API protocol and Money Service Business registration with FinCEN.
Other exchanges have tackled structured products trading from different angles. SIX Swiss Exchange extended trading hours to nearly 14 hours last December, adding six hours to accommodate US sessions for its 70,000-plus listed structured products. BTIG expanded its structured products team in 2022, focusing on secondary trading and new issue enablement for institutional clients.
Whether TP ICAP's platform can overcome the inherent liquidity challenges of customized financial products remains to be seen. Price discovery and transaction costs have historically deterred secondary market activity in structured products, even when trading venues exist.
