* John Phizackerley to take over from Terry Smith as CEO
* Appointment effective Sept. 1
* Smith to remain with Tullett as consultant
(Recasts, adds context, comments from former colleague, share
LONDON, July 17 Tullett Prebon has
appointed a former executive at Nomura to lead the
British interdealer broker through one of the toughest periods
of structural change in its history.
Tullett, whose staff match buyers and sellers of currencies,
bonds and other tradeable instruments, named John Phizackerley
as successor to CEO Terry Smith, who has been at the helm for
the last eight years.
Smith, a prominent character in London financial circles,
known for his outspoken nature and fierce rivalry with
competitors, stepped down from the top role to focus on his
asset management business Fundsmith.
He leaves Phizackerley, who takes over on Sept. 1, with a
big task: helping the company adapt to a massive reshaping of
Interdealer brokers like Tullett, ICAP and BGC
Partners have seen revenues decline as investment banks
pull back from risky trading activities to comply with new rules
brought in following the financial crisis.
Tullett's revenue fell 6 percent to 803.7 million pounds
($1.37 billion) last year.
Brokers have also faced sweeping reforms to their own
industry, as regulators push more derivatives trading onto
electronic platforms to make the market more open and safer.
Their troubles have been deepened by years of very low
interest rates, which dampened market volatility and reduced
revenue from trading products such as interest-rate swaps.
ICAP CEO Michael Spencer on Tuesday called it "as bad a
drought as I've experienced in my entire career" and confirmed
the broker was cutting staff.
Tullett declined to say what Phizackerley's appointment
would mean for the company's strategy because it is due to
report interim results on July 29.
But when it said last month that Smith would be leaving, its
shares rose, with investors speculating that a new CEO may be
more open to a merger with a rival - something analysts said
could help smaller interdealer brokers in the new environment.
A former colleague of Phizackerley at Nomura said it was
likely that he would take his time before making any big
changes, preferring instead to familiarise himself with the
company and ensure staff are up to speed with developments.
"He's a diplomat: he actively solicits advice and comes to
his own view. He is not afraid to make changes ... but takes
internal communications seriously, preparing staff and giving
updates. He doesn't sit in an ivory tower," the person said.
Phizackerley, 52, who prefers to be called "Phiz", started
out as a mining engineer with Anglo American. He later
became a research analyst, working for more than 20 years at
After Lehman's collapse in 2008, he joined Nomura,
eventually becoming CEO for the Europe, Middle East and Africa
region. He left the Japanese bank in 2013.
Tullett said former boss Smith would work as a consultant
for the firm over the next two years, advising the chairman and
the board. The 61-year-old will be paid 250,000 pounds
($427,800) per year for his services, it added.
Tullett shares, which have fallen more than 30 percent this
year, were up 0.8 percent at 252 pence at 1231 GMT against a
slight fall in an index of UK small and mid-cap firms.
($1 = 0.5844 British Pounds)
(Reporting by Clare Hutchison; editing by Ruth Pitchford and