Interdealer broker BGC Partners to buy RP Martin UK assets

Compagnie Financiere Tradition SA

15/12/2014 09:10

LONDON, Dec 15 (Reuters) - U.S. interdealer broker BGC 
Partners  BGCP.O  has struck a deal to buy the UK assets of 
rival RP Martin, BGC Partners said in a statement on Monday. 
    BGC said it also planned to acquire RP Martin's other 
businesses based in Sweden and the Netherlands in 2015. 
    No financial details of the deal were disclosed. RP Martin 
declined to comment on the transaction. 
    BGC said RP Martin, which employs around 170 brokers in 
offices in Britain, Sweden and the Netherlands, generated 
unaudited revenues in excess of $50 million in the financial 
year ending Sept. 30. 
    "BGC expects the transaction to be immediately accretive and 
to boost its European (interest) rates and foreign exchange 
platforms," BGC said. 
    RP Martin was recently fined $2.3 million by British and 
U.S. regulators over allegations its traders manipulated 
benchmark interest rate London interbank offered rate (Libor). 
 ID:nL6N0O14H9  
    Though not among the big five interdealer brokers -- ICAP 
 IAP.L , Tullett Prebon  TLPR.L , GFI Group  GFIG.N , Tradition 
 CFT.S  and BGC -- RP Martin is a well-known name in the 
industry, particularly for broking European interest rates and 
foreign exchange products. 
    Like its competitors, which make money by matching buyers 
and sellers of bonds, swaps and currencies, it has been hit by 
new regulations forcing its traditional investment banking 
clients to reduce risky trading activities, as well as efforts 
to push more derivatives trading onto electronic platforms to 
make the market more open and safer. 
    That structural change has triggered consolidation in the 
industry. Tullett recently bought oil broker PVM, while BGC is 
also pursuing a takeover of GFI.  ID:nL6N0NV1B7   ID:nL3N0TN073  
    (1 US dollar = 0.6361 British pound) 
 
 (Reporting by Clare Hutchison; Editing by Mark Potter) 
 ((Clare.Hutchison@thomsonreuters.com; +44)(0)(20 7 542 3346; 
Reuters Messaging: 
clare.hutchison.thomsonreuters.com@reuters.net)) 
 
Keywords: RP MARTIN M&A/BGC PARTNERS