IAP.L Regulatory News (IAP)

ICAP plc Interim Management Statement

· Financial regulatory reform accelerating growth in post trade

· Successful launch of EBS Direct delivering strong volume growth and a wider customer base

· Global Broking continues to be impacted by bank deleveraging

London, 5 February 2014 - ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services, issues the following Interim Management Statement for the period from 1 October 2013 to 4 February 2014.

During the period, ICAP continued to focus on the delivery of several new solutions for its diverse customer base. In October, ICAP launched its Swap Execution Facility ("SEF") which is now the market leading venue for trading interest rate derivatives. In November, EBS Direct, ICAP's relationship-based disclosed liquidity service, moved from its pilot phase to commercial launch. Average daily volume has grown from $549 million in November to $2 billion in January. In December, TriOptima resumed compressions at LCH and has since eliminated $41 trillion in gross notional outstanding.

Reduced activity by investment banks as well as the initially disruptive consequence of the new SEF regulatory environment impacted the performance of Global Broking. In Electronic Markets, the performance of BrokerTec, particularly in US Treasuries, was robust as the US Federal Reserve started to taper its quantitative easing programme. Trading volumes in major G7 pairs remained depressed on EBS Market, however, there was record activity levels in Emerging Markets and NDF pairs in January.

The Post Trade Risk and Information business benefitted from increased demand for TriOptima's subscription based portfolio reconciliation service, triResolve, which now has over 800 customers. Traiana continues to expand the breadth of its offering and customer base. While Reset's performance was held back by low interest rate volatility during the period, there has been a recent substantial improvement in activity.

As a result of the challenging market conditions, Group revenue for the third quarter to 31 December 2013 was 6% lower than the same period last year and 5% lower on a constant currency basis. The ongoing cost savings programme remains on track. Management's expectations for PBT1 for the full year remain unchanged, on a constant currency basis. There are, however, a number of external factors that could affect performance in the final quarter in Global Broking. These include continued bank deleveraging as well as the potential impact on financial markets of the SEF made-available-to-trade determinations mandating the execution of certain interest rate swaps on SEF from 15 February.

Michael Spencer, Group Chief Executive Officer, said: "Trading activity across many markets was down in the third quarter, compared to the prior year, with a slower December than we anticipated. Although market conditions remain difficult, we saw a modest improvement in activity in January as the on-going debate about the Federal Reserve quantitative easing programme continued.

"Innovation is vital for our success and our strong cash generation allows us to continue to invest in our future growth. The launch of the ICAP SEF was a very important project. We have had tremendous feedback from customers to our SEF and I am pleased that it is the market leader in interest rate swaps. We are also seeing the tangible benefits of our investments in post trade, as the regulatory push for risk mitigation drives demand for our solutions."

Investors & Analysts Conference Call:

This will be hosted by Michael Spencer at 09:00am on Wednesday 5 February 2014:

Dial in number: +44 (0)20 3003 2666Access Code: ICAP14A recording of this call will be available at www.icap.com

For further information, please contact:

Investors:Alex DeeHead of Investor RelationsTel: +44 (0) 20 7050 7123

Media:Serra BallsActing Head of Corporate CommunicationsTel: +44 (0) 7050 7124

Neil Bennett / Rebecca MitchellMaitlandTel: +44 (0) 20 7379 5151

Notes:

1 Profit before tax before acquisition and disposal costs and exceptional items

The exchange rates at 31 January 2014 were $1.64/£ and €1.22/£.

On the basis rates remain unchanged, the average exchange rate to 31 March 2014 would be $1.59/£ (FY2012/13 $1.58/£) and €1.19/£ (FY2012/13 €1.22/£), the transactional and translation impact on FY2013/14 operating profit would be a reduction of £6m.

For FY2014/15 we are currently hedged 22% of our €/£ and 17% of our £/$ forecast transactional exposures. If average exchange rates for £/$ and £/€ remain at $1.59/£ and €1.19/€, each 1 cent movement in US dollar and euro average exchange rates will impact full-year group profits by approximately £0.8m and £0.9m respectively.

About ICAP:ICAP is a leading markets operator and provider of post trade risk mitigation and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com