--ICAP to exit NYSE floor brokerage business
--Four staff seen affected by move
--Closure of unit comes after drop in ICAP profits
ICAP PLC (IAPLY) shuttered its New York Stock Exchange floor
operations as the brokerage firm tightens its belt following a 25%
drop in profits reported Wednesday, according to persons close to
the firm.
The move comes as part of a broader restructuring of
stock-trading functions at London-based ICAP, which is in the midst
of a push to transact more deals electronically and reduce
costs.
ICAP's decision to exit the NYSE floor also comes after U.S.
stock-trading volumes have dwindled for several years running,
pressuring exchanges and brokers that collect fees for executing
trades. Equities trade in the third quarter fell to its lowest
level in 4 1/2 years, according to data from Nasdaq OMX Group Inc.
(NDAQ).
About four people were seen affected by the closure, according
to one person familiar with the firm's business.
ICAP, one of the big-five brokers of swap transactions between
Wall Street banks and a central player in other markets, is
building out a range of automated functions ahead of new
regulations that will shift many derivatives transactions toward
electronic venues.
The firm on Wednesday reported that traditional voice-broking
accounted for less than one-third of its profits as revenue fell
14% to GBP746 million during the firm's fiscal first half of
2012.
The NYSE unit's closure by ICAP was earlier reported by the
Financial Times.
Write to Jacob Bunge at jacob.bunge@dowjones.com and Michelle
Price at michelle.price@dowjones.com
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