IAP.L Regulatory News (IAP)

ICAP plc - Trading Statement

- Strong growth in Electronic Markets

- Continued to expand our addressable market

- Further investment in financial technology assets

London, 15 July 2015 - ICAP plc (IAP.L), a leading markets operator and provider of post trade risk mitigation and information services announces today its trading statement for the period from 1 April 2015 to 30 June 2015. It will be delivered to shareholders attending ICAP's Annual General Meeting today.

Group revenue for the quarter decreased by 1%* compared to the same period last year on a constant currency basis (increased by 2%* on a reported basis), albeit on a lower cost base than a year ago. Management remains focused on driving future growth of the business through new technology driven products and services which expand ICAP's addressable market.

Overall market conditions have been mixed; while FX volumes have shown a significant year-on-year recovery, the continuing uncertainties surrounding Greece and the future of the Eurozone have tended to reduce risk appetite and trading volume, whilst there is still no clear picture on the future direction and timing of any interest rate moves.

Electronic Markets

Revenue increased by 6% on a constant currency basis (14% on a reported basis) during the first quarter compared to the same period last year. On the BrokerTec platform average daily volume increased in US Treasuries by 7% to $172 billion, in US repo by 5% to $217 billion and decreased by 7% in European repo to €179 billion. BrokerTec benefitted from increased volatility in US Treasuries in May and June.

Average daily volume on EBS increased by 34% to $98 billion for the first quarter as FX volatility recovered from historic lows. In particular there was strong structural growth in trading activity in both NDFs and CNH. EBS Direct, the disclosed, relationship-based liquidity service, continued to expand with over 250 new customers in the pipeline. Average daily volume for the quarter was $17 billion (Q1 2014/15 $8 billion). EBS Direct is expected to beta launch FX Outrights and Swaps in Q3, a significant part of the FX market in which EBS has never participated.

Post Trade Risk and Information

Revenues decreased 2% on a constant currency basis (in line on a reported basis) during the first quarter compared to the same period last year. Underlying demand for Post Trade products which reduce various types of second order risk, such as operational and credit risk, as well as balance sheet risk was underscored by strong growth in TriOptima driven by both triResolve and triReduce. Interest in compression has recently increased in Asia with 18 financial institutions participating in the third JSCC triReduce compression cycle eliminating 79 trillion ($641billion) in Japanese yen interest rate swaps. The additional repository reconciliation offering which aligns the records of the reporting parties with those of the global trade repositories continues to grow, as does the user base which during the period reached more than 1,400 parties. The division's performance continues to be held back by Reset as flat short-term yield curves continued to restrain activity levels.

Global BrokingRevenue decreased by 3%* on a constant currency basis (decreased 1%* on a reported basis) during the first quarter compared to the same period last year. The ongoing structural and cyclical factors affecting the division persist despite a solid performance from the OTC European interest rate derivatives desk where ICAP has a market leading franchise. During the first quarter a number of new eCommerce solutions were launched including matching sessions which provide ICAP customers with a seamless user experience at a time when liquidity remains adversely low. New enabling technology solutions remain at the heart of Global Broking's growth strategy.

Michael Spencer, Group Chief Executive Officer of ICAP said: "Against a backdrop of mixed market conditions we have started the year a leaner business, set for long-term growth and increased profitability. We've continued to focus on expanding our addressable market by developing new products and services which will cater for a wider customer base.

"Our post trade businesses are supported by accelerating demand for risk reduction services. We recently made a further investment in AcadiaSoft, Inc, a provider of electronic margining for over the counter derivatives of which we own 25%. The investment is alongside DTCC, Euroclear and 13 bank investors. This shows our continuing investment in high growth technology firms that have the potential to create value in financial markets. We will combine TriOptima's expertise through its triResolve portfolio matching service with AcadiaSoft's margin messaging platform, which will facilitate regulatory compliance and a reduction in operational costs and risks for industry participants.

"We've made progress on our strategic goals and I'm confident that our strong market position will ensure that we benefit from an increase in trading activity as macroeconomic conditions change in due course."

Ends

Investors & Analysts Conference Call:

This will be hosted by Michael Spencer at 08:30am on Wednesday 15 July 2015:Dial in number: +44 (0)20 3003 2666Access Code: ICAPA recording of this call will be available at www.icap.com

Contacts

Serra Balls Group Head of Communications +44 (0) 20 7050 7103

Alex Dee Head of Investor Relations +44 (0) 20 7050 7123

Notes:

* The percentage change in revenue excludes the effect of the discontinued businesses closed as part of the restructuring programme.

The closing exchange rates at 13 July 2015 were $1.55/£ and €1.41/£. If these rates remain constant for the rest of FY2015/16 then the average exchange rates for FY2015/16 would be $1.54/£ (FY2014/15: $1.61/£) and €1.40/£ (FY2014/15: €1.28/£). The estimated year-on-year impact on FY2015/16 is a £1m increase in operating profit from translational and transactional exposures.

Each 1 cent change in US dollar and euro full year average exchange rates would impact FY2015/16 operating profit by £2m and £1m respectively. For FY2015/16, current hedges cover 72% of $/£ and 66% of €/£ forecast transactional exposures.

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, please go to www.icap.com.