ICAP, the world's largest interdealer broker, has said it will combine its currency trading platform EBS and its bond trading platform BrokerTec.
The group has been hit by lower market volatility levels and increased regulation since the 2008 financial crisis, scuppering the flow of business from its banking clients in recent times.
It now wants to move away from electronic broking and into post-trade services.
The combined business, which will be called EBS-BrokerTec, is going to be headed by the current chief executive of EBS Gil Mandelzos. ICAP chief executive Michael Spencer will be chairman.
Seth Johnson will step down as the chief executive of BrokerTec but remains on ICAP's Global Executive Management Group.
Richard Kerschner, head of corporate development at EBS, has been appointed as the interim CEO of BrokerTec.
Michael Spencer, Group Chief Executive Officer of ICAP, said:
Our EBS and BrokerTec businesses are both world-leading electronic platforms that provide trading solutions across FX and fixed income products. Bringing EBS and BrokerTec together will allow us to deliver new products and reach new client segments.
We have demonstrated that we are able to deliver successful new trading solutions with the launch of EBS Direct last year, which has experienced exceptional volume growth. We want to continue to expand our addressable market with the launch of innovative products into other asset classes.
I look forward to working closely with Gil and the team in this exciting phase of growth.
Last month ICAP said its profit before tax for the six months to September had fallen to £86m from £139m a year earlier.