TP ICAP Acquires US Broker
TP ICAP plc announces that is has acquired SCS Commodities Corp (“SCS”), an independent energy and commodities broker based in the US.
SCS has expertise in crude oil futures, soft commodities, petroleum and refined products, natural gas options and crude oil options. It has 26 brokers who provide clients with continuous coverage of energy markets around the world including pre-trade intelligence and execution expertise of high volume trades, including blocks, inter-commodity spreads and complex option strategies.
SCS was founded in 1991. It is being sold by its five partners who together own 98% of the business, and by a corporate entity which owns the remaining 2%. The primary partners who are responsible for generating revenues will remain with the business after the acquisition and continue to develop it.
SCS will become part of TP ICAP’s energy and commodities division which provides global coverage of a wide range of energy and commodities products through its leading brands to a diverse client base. The acquisition continues the expansion of the division’s specialist execution expertise.
The consideration for the acquisition is an initial payment in cash, and further performance related amounts, also in cash, may be made at various dates over the next 5 years.
For the year ended 31 December 2016, SCS made revenues of $14.3m and profits before tax of $0.8m. At 31 December 2016 it had gross assets of $4.2m.
Source: TP ICAP
Cryptocurrencies can be regulated as commodities.
MiFID II has led to an increase in block trades.
Time spent on processing documents and data reduced fivefold.
The 10-year deal covers financial and commodity derivatives.
The calculations specify the MiFID II transparency regime for non-equities.