Icap retains Washington lobbyists
UK inter-dealer broker Icap has retained the services of a professional lobbying company in Washington to combat negative political sentiment and ensure the broker’s interests are fully represented on Capitol Hill.
Icap has faced significant negative Washington lobbying from parties attempting to say the UK broker tried to stifle competition in the US markets by poaching staff from September 11-stricken Cantor Fitzgerald, and its apparent takeover attempt of small swaps trading platform Blackbird. Icap has strenuously denied such charges.
But the petitioning led to probes by the United States Department of Justice, two congressional committees, along with a request by the Securities and Exchanges Commission to look into Icap’s behaviour in the US. The UK broker claimed it has faced relentless scrutiny because its US rivals were applying political pressure it could not match in Washington. Icap’s head of US operations, Steve McDermott, told news agency Reuters in an interview on August 23: “We have no lobbyists, no contributions, no access to Washington.”
This has now changed. The lobbyists are expected to press the case that banks typically favour strong competition between two to three large brokers for mainstream derivatives and cash products. Such a situation, as appears to occur with interest rate swaps, ensures margins are reasonably tight and liquidity pools deep enough for banks to conduct sizeable transactions. If Icap’s lobbyists can convince US politicians that this is a satisfactory and efficient market situation, it should ensure the smooth passage of its purchase of BrokerTec from a consortium of major international banks.
Icap reached a deal with the management of Blackbird last week that resulted in it selling its 19% stake in the Charlotte, North Carolina firm to the company’s management. Under the terms of the deal, Blackbird executives signed an agreement not to negatively criticise Icap and end their negative lobbying efforts in Washington.
The UK broker unveiled yesterday that it plans to acquire privately owned Kentucky-based energy broker APB Energy (See - Icap signs letter of intent to buy out APB). APB brokers gas, electricity, weather and coal derivatives on its online platform, True Quote, and through traditional voice brokering.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
One year on, regulators still want a cure for bank runs
Broad support for higher outflow assumptions on uninsured deposits, but that won’t save insolvent banks
Watchlist and adverse media monitoring solutions 2024: market update and vendor landscape
This Chartis report updates Watchlist monitoring solutions 2022 and focuses on solutions for sanctions (name and transaction) screening and monitoring adverse media and its related elements
Basel Committee reviewing design of liquidity ratios
Focus on LCR and NSFR after Silicon Valley Bank and Credit Suisse, but assumptions may not change
Risk, portfolio margin, regulation: regtech to the rescue
A white paper outlining the complexity of setting the course for risk, margin and regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Most read
- Basel Committee reviewing design of liquidity ratios
- SG trader dismissals shine spotlight on intraday limit controls
- Too soon to say good riddance to banks’ public enemy number one