Tp Icap Group Plc · LSE:TCAP
Tp Icap — Investor Day (December 2020)
9 slides from Tp Icap's investor day presentation, Dec 1, 2020
Slide 1: Market Context
Joanna Nader Market Context TP ICAP plc Investor update | 8 October 2020 12
Slide 2: Transaction Volume Drives Broking Revenue
Transaction Volume Drives Broking Revenue Cyclical: TP ICAP revenue is closely correlated with broader secondary market activity ● TP ICAP’s brokerage businesses earn revenue from facilitating TP ICAP Revenue & Related Market Transaction Volume, by Asset Class secondary market transactions (rebased
Slide 3: Market Structure Drives Medium Term Potential Activity
Market Structure Drives Medium Term Potential Activity Secular: Structural influences dominate cyclical on multi-period basis 1. Regulation is the principal driver of the bulk trading volume “potential”, as 4. Relevant groupings of customers well as the “where/how/who” of execution — Dealer-to-deale
Slide 4: Interest Rate Derivatives
Interest Rate Derivatives Clearing drives OTC volume, D2C electronic trading Key regulatory drivers: Exchange & OTC Rates Derivatives OTC Interest Rate Deriv. Turnover by Avg. Notional Turnover ($tn) Participant Group (% of Total) 1. Clearing mandate (via G20) 50% $15 100% 40% $12 75% 2. Best execut
Slide 5: FX Derivatives
FX Derivatives Early impact of UMR on trading volume & product choices Key regulatory drivers: Electronic FX Trading, by Product Relative Size of Inter-Dealer vs (% Value Traded) Dealer-to-Client (% Value Traded) 1. Uncleared Margin Rules (UMR) – phased global rollout 2016-2022 Options 49% 51% 35% N
Slide 6: Credit
Credit Inefficiency & dysfunction Key regulatory drivers: Dealer inventory of US corporate Inter-dealer Trading bonds (% US Corporate Bond Volume) (Net position, US$ trn) 1. Regulatory capital treatment of market risk 300 28% 26% 250 2. Volcker Rule (US) 24% 200 22% 3. Best execution (MiFID 2) 150 2
Slide 7: Cash Equities
Cash Equities Mature, but still evolving Key regulatory drivers: Global Equity Cash & Derivatives EU Dark Trading as % of Total On-venue (Value traded $m, rebased to 100) Activity 10 350 1. Regulation National Market System (“Reg NMS”, US; 2005) & MiFID 1 (EU; 2007) 8 300 2. Best execution (MiFID 2)
Slide 8: Disclaimer
Disclaimer This presentation has been prepared by TP ICAP plc (together with its subsidiaries, the “Group”) solely for informational purposes. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of t
Slide 9: TP ICAP Capital Markets Day
TP ICAP Capital Markets Day 1 December 2020