London-listed broker enhances its voice in US with another acquisition

 
William Turvill
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Tullett Prebon has acquired Creditex’s New York-based hybrid voice broking business (Source: Getty)

London-listed Tullett Prebon has announced a new US acquisition.

The interdealer broker has agreed a deal for Creditex’s US hybrid voice broking business from Intercontinental Exchange (ICE), which owns the New York Stock Exchange.

The team of 14 brokers, based in New York, provides voice broking and trading services for credit derivatives.

Read more: US Department of Justice set to wave through ICAP-Tullett deal

Tullett Prebon expects to complete its takeover of the ICAP's global hybrid voice broking and information business later this year.

“This is another great deal for Tullett Prebon and demonstrates that we continue to take advantage of the profound changes in the industry to pursue attractive opportunities,” said John Phizackerley, chief executive of Tullett Prebon.

Read more: ICAP offloads voice-brokerage to Tullett Prebon

“For complex products where pricing does not lend itself to automation, clients find value in having expert brokers, supported by technology, available to discuss trading ideas and provide insights on the market environment and sentiment. The acquisition of this high quality CDS team is an important addition to our business and is consistent with our strategic aim to grow in specialist areas.”

Voice broking is the traditional method of brokers ringing up to connect buyers and sellers, which is being increasingly challenged by the rise of electronic trading platforms, which ICAP is focusing on.

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