EBS BrokerTec Markets

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EBS BrokerTec Markets
EBS Brokertec.jpg
Founded 1999
Headquarters New York
Key People Seth Johnson, CEO; Dan Cleaves, Darryl Hooker,
Products Trading platform for fixed income and FX markets
Website www.icap.com

EBS BrokerTec Markets is NEX's (formerly ICAP's) electronic foreign exchange (FX) and fixed income business.

The BrokerTec platform facilitates the majority share of daily volume in electronically traded U.S. Treasuries in North America.[1] It is live in twelve countries with more than 250 participants and transacts in excess of $500 billion (single count) in fixed income securities.

EBS is among the largest dealing platforms for spot foreign exchange, with average daily volume in 2015 of $107 billion.[2] This figure is down from September 2008, when EBS' daily volume hit a high of $274 billion.[3]

History

EBS was founded in 1990 by a 13-member bank consortium that included currency dealers UBS, Citigroup, HSBC and JP Morgan Chase. It was sold to ICAP in 2006, in a deal valued as high as $825 million.[4]

ICAP acquired BrokerTec, a fixed income electronic trading platform, in May 2003, and in 2014 combined it with EBS, its FX trading platform.[5]

The original founders of BrokerTec, were seven of the world’s eight biggest fixed-income dealers: Citigroup, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley.

BrokerTec launched its commercial operations in June 2000. Since then, BrokerTec has expanded its product base and to offer trading in more than 20 fixed income products, both cash and repo.

In May 2003, BrokerTec was acquired by ICAP Plc. In September 2003, BrokerTec and ICAP launched the first of its combined voice and electronic liquidity pools offering comprehensive fixed income interdealer brokerage.[6]

In December 2014 ICAP combined its electronic businesses, EBS and BrokerTec, electronic platforms for FX and fixed income respectively. The resulting single business division is now referred to as EBS BrokerTec Markets. The BrokerTec CLOB business is now called BrokerTec Market. In August 2015 Dan Cleaves and Darryl Hooker were appointed to co-head EBS BrokerTec Markets.[7]

In January of 2017, BrokerTec Europe agreed to acquire a controlling majority stake in e-MID SIM SpA “e-MID”, the first Italian electronic central limit order book platform for interbank deposits and overnight indexed swaps.[8]

Technology

EBS BrokerTec in February 2017 selected Nasdaq's Smarts market surveillance technology to monitor activity across US treasuries, FX and US and EU repo markets.

Products and Services

EBS

  • EBS Market, a platform for anonymous trading of spot FX, non-deliverable forwards, and precious metals.
  • EBS Direct, a platform for liquidity providers to stream tailored prices directly to customers with which they have pre-established relationships.

BrokerTec

Anonymous electronic matching platform for the fixed income markets, including:

  • US Treasuries
  • US Repo
  • European Government Bonds
  • European Repo.

BrokerTec facilitates both API and manual trading for institutions, banks and non-bank professional trading organizations.[9]

Key People

References

  1. US Treasury. ICAP.
  2. Monthly volume data. ICAP.
  3. More than a year after CEO change, EBS plays catch-up in FX. Reuters.
  4. ICAP Agrees to Buy Electronic Currency Broker EBS. Bloomberg.
  5. ICAP to combine EBS and BrokerTec business. ICAP.
  6. Our History. BrokerTec.
  7. TRADERS ON THE MOVE: EBS Forms Exec Team, RJO Hires FX Head. Traders Magazine.
  8. BrokerTec Europe to acquire e-MID SIM SpA. Finextra.
  9. BrokerTec Market. BrokerTec.