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GFI GROUP INC. AND ICAP PLC TO ACQUIRE OWNERSHIP
STAKES IN
THE CLEARING CORPORATION
- Parties anticipate joint development of new clearing services for OTC derivatives -
New York, December
21, 2006 –
GFI Group Inc. (Nasdaq: GFIG) and ICAP plc (IAP.L), global leaders in
inter-dealer brokerage of OTC derivative products, announced today that they
plan to jointly develop new clearing services for OTC derivative products
with The Clearing Corporation, one of the world's oldest, independent
clearinghouses for derivative instruments, and have agreed each to acquire
a minority ownership interest in The Clearing Corporation. In addition, The
Clearing Corporation has agreed to appoint one GFI/ICAP representative to
its Board of Directors.
The Clearing Corporation is a private Delaware corporation, based in Chicago,
which serves major dealers and participants in the worldwide marketplace
for derivative products, many of who are stockholders.
GFI and ICAP intend to work with The Clearing Corporation to jointly develop clearing services for OTC derivative products, including credit and interest rate derivatives. The Clearing Corporation will continue to function as an independent entity.
The establishment of a centralized clearing mechanism should allow market participants to more effectively net offsetting transactions, while boosting capacity through the elimination of backlogs and lengthy settlement times in the OTC markets.
Michael Gooch, Chairman and Chief Executive Officer of GFI, said:
“This investment confirms our commitment as leading inter-dealer brokers to developing clearing capabilities and solutions for OTC derivative products. It complements our hybrid electronic platforms, ATS facilities and straight-through-processing capabilities. Ultimately, we believe that centralized clearing will further expand the market for OTC derivative products through added settlement efficiency and reliability.”
Michael Spencer, Group Chief Executive Officer of ICAP, said:
“The expansion of independent clearing facilities is an important step in the continuing growth of the global OTC markets. The membership of The Clearing Corporation includes some of the most active participants and customers in these markets. Together, we will support The Clearing Corporation's mandate to develop clearing capabilities for new financial derivatives products that will benefit all market participants.”
Michael C. Dawley, Chairman of The Clearing Corporation commented:
“GFI's and ICAP's investment in The Clearing Corporation demonstrates the value our independent and flexible clearing model brings to the marketplace. We look forward to working with GFI and ICAP and welcome them as additional strategic partners.”
About GFI Group Inc.
GFI Group Inc. (www.GFIgroup.com) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.
Headquartered in New York, GFI was founded in 1987 and employs more than 1,300 people with additional offices in London, Paris, Hong Kong, Tokyo, Singapore, Sydney, Englewood (NJ), and Sugar Land (TX). GFI provides services and products to over 1,700 institutional clients, including leading investment and commercial banks, corporations, insurance companies and hedge funds. Its brands include GFI™
, GFInet®, CreditMatch®, Starsupply®, Amerex® and FENICS®.
Investor relation
contacts:
Christopher Giancarlo, Executive Vice President - Corporate Development
+1-212-968-2992
Chris Ann Casaburri, IR Manager
+1-212-968-4167
investorinfo@gfigroup.com
Media
contact:
GFI Group Inc.
Alan Bright
Public Relations Manager
+44-20-7877-8049
alan.bright@gfigroup.co.uk
About ICAP plc
ICAP is the world's largest interdealer broker with a daily average transaction volume in
excess of $1.5 trillion, more than 50% of which is electronic. The Group is active in the
wholesale markets in interest rates, credit, energy, foreign exchange, equity derivatives
and emerging markets. In June 2006 ICAP acquired EBS, the world's leading provider of FX
trading and market data solutions. ICAP plc was added to the FTSE 100 Index on 30 June 2006.
For more information go to www.icap.com
Contact:
Mike Sheard - Director of Corporate Affairs
+44-20-7050-7103
mike.sheard@icap.com
About The Clearing Corporation
The Clearing Corporation provides clearing services for global exchange and over-the-counter (OTC)
traded derivatives. As the only independent derivatives clearinghouse in the world, The Clearing
Corporation is in a unique position to provide more innovative and customer-focused OTC and
exchange-traded derivatives clearing services in bringing markets together. The Clearing
Corporation is a stockholder-owned, Delaware corporation, now in its 82nd year of business
and serves numerous clients in a variety of markets. Additional information on The Clearing
Corporation is available at www.clearingcorp.com.
Contacts:
Jenny Willcox
Vice President, Human Resources and Public Relations
+1-312-786-5780
jenny.willcox@clearingcorp.com
or Andrew Yemma
Intermarket Communications
+1-212-754-5450
ayemma@intermarket.com
Forward-looking statements:
Certain matters discussed in this press release contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. When used in this
press release, the words "anticipate," "believe," "estimate," "may," "might," "intend,"
"expect" and similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from those contemplated,
expressed or implied by the forward-looking statements contained herein. These
forward-looking statements are based largely on the expectations of the parties and
are subject to a number of risks and uncertainties. These include, but are not limited
to, risks and uncertainties associated with the development of a centralized clearing
mechanism, which may not occur in the timeframe anticipated by the parties or at all or
which may not be accepted by market participants or may be subject to competing clearing
services. The parties do not undertake to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
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