ICAP & RADAR LOGIC PARTNER TO LAUNCH OTC TRADING OF RPX BASED RESIDENTIAL PROPERTY DERIVATIVES

New York - 14 August 2007

ICAP becomes the first authorized interdealer broker for derivative transactions based on the RPXâ„¢

ICAP (IAP.L), the world’s premier interdealer broker, and Radar Logic Incorporated, the analytic and data company that powers the Residential Property Index™ market (RPX™), announced today that they have reached an agreement to form a joint venture related to the RPX market. In addition, ICAP has signed a license to act as the first authorized interdealer broker for derivative transactions based on the RPX. These derivatives will allow users to hedge risk on residential property prices in 25 major cities across the United States. A number of Wall Street dealer firms have already signed licensing agreements with Radar Logic.

As part of the joint venture, ICAP has been appointed the authorized broker to conduct the market fixing of residential property derivatives prices. The ICAP Radar Logic fixing will be established on a daily basis. This will use a similar polling methodology as ICAP employs in other fixing and market benchmarks, such as the ISDA swap fixes.

The ICAP-Radar Logic joint venture company will develop new lines of market pricing mechanisms, analytics and commentary based on the U.S. residential property market. The information offering will include forward curve analysis related to property derivatives, a property derivative calculator, and derivative market reports and commentary.

Doug Rhoten, Chief Executive Officer, ICAP North America, said “U.S. residential property is an exciting asset class that offers significant potential for ICAP. Derivatives based on the RPX offer institutional customers a means to hedge their U.S. residential property risk in the highly efficient and liquid over-the-counter markets, and we expect these products to have a unique acceptance among dealers and market participants. The need for these products is highlighted by the recent dislocation and volatility in the U.S. residential property market and the absence of an effective risk mitigation tool. We expect a wide array of transactions to be based on the RPX index.”

Andrew Aymen Samawi, Head of Residential Property Derivatives, ICAP North America said, “We expect RPX derivatives to be an effective risk mitigation tool for participants in both the mortgage markets and the collateralized debt obligations market (CDO) markets that have embedded mortgage products for yield enhancement. As concerns affect other parts of debt and real estate markets, the timely introduction of this robust index can address the need and urgency for real estate hedging in volatile markets, as well as provide a transparent and reliable basis for investors to participate in U.S. residential real estate.”

“We are pleased to be establishing this important relationship with ICAP,” said Michael Feder, President and CEO of Radar Logic Incorporated. “Combined with the very strong dealer group we are assembling, this venture will accelerate the utility of the RPX market for all participants in the capital markets.”

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