LONDON Nov 16 ICAP has shut its share trading
unit at the New York Stock Exchange in the latest move by the
world's largest derivatives broker to drive down costs,
according to two sources.
ICAP shut its NYSE floor trading business
this month after its head Kenny Polcari left the firm to pursue
The NYSE-based team comprised three traders as well as
Polcari, two sources said on condition of anonymity.
ICAP declined to comment on its NYSE business.
The move marks the latest in a series of cuts by the world's
top broker as it seeks to reduce costs to offset falling revenue
at the firm.
ICAP said on Wednesday its revenue for the six months to the
end of September was down 14 percent at 746 million pounds ($1.2
billion) while profits were off a quarter to 144 million pounds
for the period.
Brokerages such as ICAP and rival Tullett Prebon Plc
make money by matching buyers and sellers of bonds,
currencies and swaps, but they have been hit by a drop in
trading activity as investment banks cut back in the financial
"This has been one of the toughest periods in my 36-year
career in the wholesale financial markets," ICAP Group Chief
Executive Michael Spencer said on Wednesday. "Trading volumes
this year have fallen significantly across nearly all asset
Equities broking on exchanges such as NYSE is a relatively
small part of ICAP's business and accounted for only 7 percent,
or 55 million pounds, of revenue in the six months to the end of
ICAP continues to trade equities out of its Jersey City
office and its Link office in New York, a source close to the
firm said on Friday.