Connecting the world s financial markets. ICAP INFORMATION SERVICES (IIS) ICAP INDICES REPOFUNDS RATE (RFR) EXPANSION August 6 th, 2014

Transcription

1 Connecting the world s financial markets ICAP INFORMATION SERVICES (IIS) ICAP INDICES REPOFUNDS RATE (RFR) EXPANSION August 6 th, 2014

2 OVERVIEW ICAP INFORMATION SERVICES (IIS) ICAP INDICES REPOFUNDS RATE (RFR) EXPANSION 2

3 ICAP INFORMATION SERVICES (IIS) Information Services Real-time, end-of-day and historical data solutions across ICAP s brokered product range Hedge funds 32 IRS FX IIS E&C Corporates Central Banks Dealers Average number of daily data updates 280 m 70+ We operate in the world s major financial centres where volume traded between users via ICAP is fed into our market data products CDS ICAP Indices Transaction Based, Volume Weighted Indices FI MM Investment Managers Mutual Funds Pension Funds Commercial and Investment Banks Market Commentary Unique, authoritative analysis from notable economists in key global markets Number of records delivered to end user customers Diverse, end user customer base 96, s 3

4 COLLECTION & DISTRIBUTION OF DATA Mission Statement: to deliver transaction-based, market-reflective, client-focused data solutions INTERNAL ANALYTICS PLATFORM GLOBAL BROKING CONTROL FUNCTION CENTRALISED DATABASE 280 M AVERAGE NUMBER OF DAILY UPDATES 4 TB TICK DATABASE INDICES ELECTRONIC GLOBAL QUALITY ASSURANCE TEAM 24/5 COVERAGE LONDON NEW YORK HONG KONG MANILA GLOBAL MARKET DATA PLATFORM ICAP US TREASURY INDEX BrokerTec 10 am REPO AVERAGE HEFFR THIRD PARTY FEEDS GLOBAL MONITORING HEDDR JOINT PRODUCTS 4

5 ICAP Information Services - Strategy Seize opportunities created by regulatory change MiFID II for pre and post trade data services IOSCO Principles for Financial Benchmarks Electronic Focus (iswap, BrokerTec, EBS) Source Driven customer sponsored product development initiatives Expand Distribution Partnerships (Data / Analytics / Indices) Expand and diversify customer base ICAP Indices / Fixings / Benchmarks 5

6 ICAP INDICES: BUSINESS MODEL Index Creation IIS Range of Indices 6

7 IOSCO Principles for Financial Benchmarks GOVERNANCE QUALITY OF THE BENCHMARK QUALITY OF THE METHODOLOGY ACCOUNTABILITY IIS has adopted the IOSCO Principles for Financial Benchmarks All principles are implemented through: - Internal ICAP policies and procedures - The creation of IIS Ltd (Sept 14) as a separate legal entity - The creation of independent advisory groups for each benchmark - The review, continuation or termination of IIS s submitting activities 7

8 ICAP BENCHMARKS: GOVERNANCE & CONTROL FRAMEWORK All ICAP benchmarks are designed to comply with the IOSCO Principles for Financial Benchmarks Independent Advisory Groups ICAP Indices ICAP Indices Control Functions INDICES Audit Functions ICAP INDICES POLICIES & PROCEDURES BENCHMARK OPERATIONAL PROCESSES - IIS ICAP US TREASURY INDEX BrokerTec 10 am REPO AVERAGE HEFFR Internal Submission HEDDR Third Party Submission Calculation Quality Control Distribution Thomson Reuters Bloomberg Internet ICAP direct Opportunity Derivatives ETFs & Structured Products Index Data Sales Execution Venues Operational Monitoring & Surveillance 8

9 RepoFunds Rate Eurozone Repo Markets Growing significance of secured money markets Source: ECB Euro Money Market Survey, Nov 2013, percentage of total 9

10 RepoFunds Rate Eurozone Repo Markets: Concentration of turnover in secured lending Source: ECB Euro Money Market Survey, Nov 2013, percentage of total Share of all government bonds within pool of EU-originated collateral: 81.4% (ICMA European Repo Market Survey, Dec 13) BrokerTec and MTS combined volumes in cleared one-day Eurozone sovereign repo: 220bln per day (single counted) 10

11 RepoFunds Rate RepoFunds Rate Indices Launched December 2012 Comprising RFR Germany, RFR France and RFR Italy Includes General Collateral transactions and Specific Collateral transactions Transparent methodology Transparent pricing Replicable Trade-backed and high volume 11

12 RepoFunds Rate RepoFunds Rate Euro Launched August 2014 Uses repo transactions with any Eurozone sovereign bond as collateral High volume benchmark: 221.9bn per day (pre-filter Jan-Jun 2014 average, single counted) Daily turnover representative of Eurozone sovereign repo market 12

13 RepoFunds Rate Initial volumes used in calculation of RFR Indices 13

14 REPOFUNDS RATE Key Design Features Trade-backed and high volume Transparent Replicable Uses include Benchmark and measure of performance for funding Reference for OIS With OIS, bond collateral discount curves Next steps Additional industry repo trade providers Additional currencies 14

15 ICAP plc 2 Broadgate, London EC2M 7UR +44 (0) Kevin Taylor Managing Director - IIS (P) +44 (0) (M) Kevin.Taylor@icap.com Jan de Smedt Global Head of Indices - IIS (P) +44 (0) (M) Jan.deSmedt@icap.com Robert Walton Director of Index Services - IIS (P) +44 (0) (M) Robert.Walton@icap.com Disclaimer The information and material presented in the attached presentation (the Presentation") are provided to you for informational purposes only and are not to be used or considered as an offer or a solicitation to sell or an offer or solicitation to buy or subscribe for securities or other financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Neither ICAP Plc nor any of its affiliates (collectively ICAP ) makes any representation or warranty or guarantee as to the completeness, accuracy, timeliness or suitability of any information contained within any part of the Presentation nor that it is free from error. ICAP does not accept any liability (whether in contract, tort or otherwise howsoever and whether or not they have been negligent) for any loss or damage (including, without limitation, loss of profit), which may arise directly or indirectly from use of or reliance on such information. Whilst the information provided has been obtained from sources believed to be reliable, ICAP does not attest to its accuracy or completeness. ICAP reserves the right to change any source without restriction or notice. The values quoted for any particular investment are indicative only and are subject to change. Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Opinions and/or estimates reflect a judgment at the original date of publication by us and are subject to change without notice. The price of, value of and income from any of the securities or financial instruments mentioned in the Presentation can fall as well as rise.