UK-based interdealer broker Tullett Prebon has agreed to acquire Creditex’s US hybrid voice brokerage operations from Intercontinental Exchange (ICE) for an undisclosed amount.
The New York-based broking business offers hybrid voice broking and trading services for credit derivatives, and comprises 14 brokers.
“The acquisition adds to Tullett Prebon’s deep pool of broking expertise, ahead of its anticipated acquisition of the ICAP global hybrid voice broking and information business later this year,” Tullett Prebon said.
The deal is subject to Financial Industry Regulatory Authority (FINRA) approval.
Tullett Prebon CEO John Phizackerley said: “This is another great deal for Tullett Prebon and demonstrates that we continue to take advantage of the profound changes in the industry to pursue attractive opportunities.
For complex products where pricing does not lend itself to automation, clients find value in having expert brokers, supported by technology, available to discuss trading ideas and provide insights on the market environment and sentiment. The acquisition of this high quality CDS team is an important addition to our business and is consistent with our strategic aim to grow in specialist areas.”
ICE will retain Creditex’s electronically traded markets and systems, post-trade connectivity platforms as well as intellectual property that caters to the global credit default swaps market.