TP ICAP Considers US Listing for Data Business in Q2 Amid 12% Profit Rise

TP ICAP, a British inter-dealer broker, may list its data and analytics business in the US as early as Q2. The company reported a 12% rise in annual pretax profit. The listing decision is pending, and the move would allow the business to tap into the US market.

The British inter-dealer broker TP ICAP Group Plc is reportedly considering listing its Parameta Solutions data unit in the US as early as the second quarter of 2023 [1]. This move comes as the company seeks better liquidity and a more suitable market for its primarily dollar-denominated business.

TP ICAP, the world's largest inter-dealer broker according to its website, has been grappling with the challenges of competing with New York's equity capital markets. The firm, which counts many of the largest Wall Street banks as clients, believes that the US market offers a more favorable ecosystem for specialist investors and analysts [1].

Parameta Solutions, TP ICAP's data business, offers independent data on markets such as rates, credit, and equities. The company's deliberations to list in the US are not yet final, and no decision has been made [1]. However, the potential move comes as a blow to London's reputation as a listing location for internationally-focused companies.

London's capital markets have faced criticism in recent years as some companies, including CRH Plc and Flutter Entertainment Plc, have chosen to switch their main listings to New York [1]. These moves have contributed to a decline in London's status as a preferred listing location, particularly for companies with significant US operations.

The decision to list in the US also reflects the growing importance of data in the financial industry. With 95% of Parameta Solutions' revenue being dollar-denominated, the US market offers a more natural fit for the business [1].

References:
[1] Bloomberg. (2023, August 7). British Brokerage TP ICAP Favors New York Listing for Data Unit. https://www.bnnbloomberg.ca/business/company-news/2023/08/07/british-brokerage-tp-icap-favors-new-york-listing-for-data-unit/