ICAP plc (IAP.L), the world’s premier interdealer broker, announces that daily electronic broking volumes in the European repo market reached a record level of €261 billion (single count) at the end of May on ICAP’s BrokerTec system. Transactions totalled more than 8,000 matched trades in a single day. Average daily volumes in European repo on BrokerTec in May 2007 were €212 billion.
John Edwards, Director of European Fixed Income Sales at ICAP Electronic Broking, said: “As the market need for short dated funding and financing continues to increase, market participants are increasingly looking for the ease and simplicity offered by electronic trading. With its BrokerTec platform, ICAP is well positioned in the market to benefit from this increased activity. Providing anonymous execution, good depth of market and excellent liquidity with tight bid offer spreads on BrokerTec all help to attract more business to the screen.”
Strong fixed-income activity is also helping to drive the growth in European repo volumes, as the number of positions requiring funding increases. A further macroeconomic factor is the shift towards secured borrowing and lending, and enhanced use of collateral management techniques in preparation for the introduction of Basel 2 in 2008.