World’s Largest Interprofessional Broker TP ICAP Launches Crypto ETPs

The world’s largest cross-industry broker, TP ICAP, announced Monday that it has launched crypto-related exchange traded products (ETPs) for its European clients.

The company facilitates transactions between hedge funds, investment banks and large financial institutions.

He said he had already executed the first crypto trade with Wall Street heavyweight Goldman Sachs. He traded the ETC Group Physical Bitcoin, a physically backed equity instrument, which trades on Xetra, against the CME Bitcoin Future. DRW, Flow Traders and Jane Street provided liquidity.

These ETPs are a way for companies to gain exposure to crypto assets without touching them directly.

TP ICAP has had a crypto working group since 2017 and first provided liquidity to its clients on CME crypto products in 2019, said Duncan Trenholme, co-head of digital assets at TP ICAP at The Block.

Over the next few months, the company will look to expand to offer exchange-traded funds (ETFs) in the United States.

“This is a natural progression for us and in line with customer demand,” Simon Forster, co-head of digital assets at TP ICAP, told The Block.

TP ICAP’s goal for 2022 is the launch of its spot trading platform, which will allow clients to trade physical bitcoin for the first time. It is an instrument that uses external custodians to clear and settle the product.

He also explores over-the-counter (OTC) derivatives, such as over-the-counter swaps and options.

The new products will follow the Financial Conduct Authority’s anti-money laundering and terrorist financing (LAB / CFT) registration requirements.

“Once we get that, we’ll be in a good position to launch the spot platform,” Trenholme said. The company is targeting the second quarter for spot trading and OTC derivatives will follow with internal approvals and customer demand, he added.

In recent years, the company has expanded its customer base to include what Trenholme has called some of the “top-tier” crypto firms. When asked for details, he declined to name names.

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

About the author