Icap, the world’s biggest interdealer broker, applied to the Financial Services Authority to become a regulated exchange, The Times reports. If the request is granted, it would allow the group to increase its client base significantly.
The news emerged as Icap, where Michael Spencer, the Conservative Party Treasurer, is chief executive with a quarter stake, announced sharply higher interim figures. The business is one of the few to profit from turbulent market conditions and has announced a string of record monthly trading updates over the summer.
Profits before tax, amortisation and other one-off costs were 34% higher at 161.5 million in the six months to end-September — and would have been 9 million higher but for the fall in the value of the dollar, in which most of its business is transacted.
The move to be granted regulated market status would allow Icap to open up proper exchanges for the first time in a number of new and growing areas that could be accessed by almost anyone. At present, clients must be registered with the FSA.
Spencer says he was looking at a number of opportunities, although he refused to be specific. “I’m going to have some fun with this,” he says. “I want to launch some stuff that will make people go: ‘What!’ “