NEWS UPDATE
M & A
TP ICAP creates new dealerto-client credit business with acquisition of Neptune
The move will see banks including JP Morgan, Deutsche Bank, BNP Paribas and Crédit Agricole hold a 30 % stake in the new business.
TP ICAP has acquired Neptune Networks as part the firm looks to create a new dealer-to-client credit business.
The move will see the firm combining and enhancing Neptune’ s proprietary data network, which provides real-time pre-trade bond market data from sell-and buy-side clients, with Liquidnet’ s electronic credit trading platform.
Nicolas Breteau, chief executive of the TP ICAP Group said:“ By combining Liquidnet’ s extensive client reach with leading liquidity providers, we can seamlessly and discreetly connect the sell-side and buy-side to unlock exciting potential, positioning us well to drive a step-change in fixed income markets and liquidity.”
Neptune is co-owned by a consortium of investment banks, and upon close of the deal, Barclays, BNP Paribas, Citi, Crédit Agricole, Deutsche Bank, ING, JP Morgan, Morgan Stanley and UBS will hold a 30 % stake in the new business.
“ At JP Morgan, we are committed to promoting market competition and increasing liquidity, while also backing innovative initiatives like this one that enhance market efficiency,” said Nick Adragna, cohead of global investment grade and macro credit trading at JP Morgan.
“ The strategic integration of the Neptune and Liquidnet Credit complementary offerings is poised to improve competition and liquidity while delivering increased choice and improved value to both the buy side and the sell side.”
The combined ownership is expected to provide incentivisation to help the business grow and enhance buy-side connections, according to the firms.
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