ICAP brokers first RPX based residential property derivative transaction

New York, NY – 19 September 2007

ICAP plc (IAP.L), the world’s premier interdealer broker, has brokered the first derivative transaction based on the Residential Property Index (RPX). The trade was a “Total Return Swap” and the counterparties to the trade were major Wall Street dealer banks licensed to trade the RPX index. Derivative transactions on the RPX index, created by Radar Logic, allow investors to hedge risk on residential property prices in 25 major cities across the United States.

Doug Rhoten, Chief Executive Officer, ICAP North America said “ICAP is delighted to witness the acceptance and participation of the dealers in RPX derivatives. In today’s volatile markets it is becoming more and more important for our customers to be able to hedge their residential property risk. We are seeing today the results of long efforts that included, the dealer community, Radar Logic and ourselves to bring to market a unique viable residential property hedging tool.”

Andrew Aymen Samawi, Head of Residential Property Derivatives, ICAP North America said, “The high level of interest in RPX derivatives shows there is a real need for an effective risk mitigation tool. We have now shifted to the next phase of wider acceptance that will not only lead to greater volume, but also pave the way to product expansion over time.”

ICAP had announced the creation of a joint venture related to the RPX market with Radar Logic Incorporated, the analytic and data company that created the residential property index, in August. The joint venture company will develop new lines of market pricing mechanisms, analytics and commentary based on the U.S. residential property index.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development