IAP.L Regulatory News (IAP)

26 Jul 2006 11:34

ICAP PLC26 July 2006 Press Release China Foreign Exchange Trade System and ICAP are approved to prepare to formjoint venture in Shanghai London and Shanghai, 26, July 2006 - The China Foreign Exchange Trade System &National Interbank Funding Center (CFETS) and ICAP plc (IAP.L), the world'slargest interdealer broker, are approved by CBRC to form a joint venture ---Shanghai CFETS-ICAP International Money Broking Co. Ltd., based in Shanghai. CFETS is owned by the People's Bank of China and runs the country's interbankmarket and foreign exchange markets. The new joint venture will provide voicebroking services to the money, bond and derivatives markets in both theRMB and international markets. Xie Duo, President of the CFETS, said "With the expansion of market demand thereare significant opportunities for the development of the interbank market forfinancial products. Compared with the global financial market, China's interbankmarket still has great potential for development and working with ICAP in thisjoint venture will help us accelerate that development." Michael Spencer, ICAP Group Chief Executive, commented, "China represents asignificant opportunity for ICAP to take part, together with the CFETS, in therapid development and growth of the interbank financial markets. This is anexciting prospect for ICAP, in the next few years the volume of transactions inChinese wholesale financial products will rise rapidly and China will berecognised globally as one of the most important and liquid markets. About CFETS The China Foreign Exchange Trade System (CFETS), also known as the NationalInterbank Funding Center (the Center), is a sub-institution of the People's Bankof China (PBC). Its main functions include: providing systems for foreignexchange (FX) trading, RMB lending and bond trading; organizing interbank FXtrading, RMB lending and bond trading; handling settlement and clearing of FXtrading; prompting the clearing of RMB lending and bond trading; providing anonline commercial paper (CP) quotation system; providing information on the FX,bond and money markets; and engaging in other businesses authorized by the PBC.With its head office in Shanghai and its back-up center in Beijing, CFETS has 18sub-centers all over the country. Under the guidelines of "multipletechnological means and trading patterns to meet market demands of variouslevels", through the advanced electronic trading mode, based on dedicated lineand internet, facing the interbank FX market, bond market and money market,CFETS has played a significant role in optimizing RMB exchange rate formingmechanism, transmitting central bank monetary policies, serving financialinstitutions and supervising market operations. About ICAP: ICAP is the world's largest voice and electronic interdealer broker with a dailyaverage transaction volume in excess of $1 trillion, 50% of which is electronic.The Group is active in the wholesale markets in interest rates, credit,commodities, foreign exchange and equity derivatives. With over 3,500 staff,ICAP has a strong presence in each of the three major financial markets, London,New York and Tokyo, together with a local presence in 20 other financialcentres. ICAP plc was added to the FTSE 100 Index on 30 June 2006. ICAP has recently completed the acquisition of EBS, the pre-eminent provider offoreign exchange trading and market data solutions to the professional spotforeign exchange community. Approximately US$145 billion in spot foreignexchange, 700,000 ozs gold and 7,000,000 ozs silver transactions are conductedover the EBS Spot Dealing System in more than 40 countries each day. EBS waslaunched in September 1993 by a group of the world's largest foreign exchangemarket making banks. For more information go to www.icap.com Contacts: Mike Sheard Director of Corporate Affairs (44) 7770 381370 Neil Bennett The Maitland Consultancy (44) 20 7379 5151 or Paul Mottram Upstream Asia - Hong Kong (852) 2973 0222 This information is provided by RNS The company news service from the London Stock Exchange