LONDON Jan 14 ICAP has sold a stake in
technology unit Traiana to seven top banks in the latest example
of the world's largest broker partnering with clients on key
projects in a bid to retain their long-term support.
ICAP said on Monday it had sold 12 percent of Traiana, which
sells systems to streamline traders' back offices, to the banks
for about $35 million.
The banks are Bank of America Merrill Lynch,
Barclays, Citigroup, Deutsche Bank, JP
Morgan, Nomura and Royal Bank of Scotland
"Traiana's market leading technology assisted the foreign
exchange industry in lowering the cost of processing
transactions, which helped us make the $4 trillion of daily
volumes that you see today a reality," said Troy Rohrbaugh,
global head of foreign exchange and rates trading at JP Morgan.
The banks also struck a deal with ICAP whereby they can buy
in the future an additional 20 percent of Traiana for $82.5
million, they said.
ICAP said it had changed Traiana's board to reflect the new
ownership structure with each of the banks taking a seat
alongside the division's chairman Gil Mandelzis and chief
executive Andy Coyne.
Traiana, which provides banks and other trading firms with
systems to automate post-trade processing and risk management,
looks well positioned to tap reforms to make the
over-the-counter (OTC) trading market more transparent.
Regulators want to force more of the vast OTC market to use
exchanges and clearing houses to tackle some of the problems
that arose after the collapse in 2008 of Lehman Brothers, a big
This will change how banks and brokers process these trades
which could create more demand for Traiana products.
"Traiana is an increasingly important firm for us and our
clients," said Thomas Gillie, co-head of G10 foreign exchange
trading at BofA Merrill Lynch.
The Traiana sale is the latest example of ICAP selling
stakes in its key initiatives to clients.
ICAP said in December Citigroup had joined Barclays, BofA
Merrill Lynch, Deutsche and JP Morgan as an investor in the
broker's swaps broking system i-Swap.
The British broker also said last month the door is open to
other participants in i-Swap.