Icap has won a $65 million deal to supply technology for fixed income and foreign exchange electronic execution services in mainland China.
The three-year deal with China Foreign Exchange Trade System (CFETS), China's official inter-bank market trading platform and infrastructure provider, will be delivered by EBS BrokerTec, Icap's electronic FX and fixed income business.
CFETS has been planning its 'Next Generation Trading System' (NGTS) for a number of years and has worked with Icap previously on the founding of Shanghai CFETS Icap - a joint venture to provide broking and information services in the onshore and offshore interbank foreign exchange, money market, bond and derivatives market.
Under the new agreement, Icap will supply CFET's NGTS with the capability to offer central limit order book and disclosed trading models for FX spot, forwards and swaps and a disclosed trading model for cash bonds, to the onshore renminbi market, through a localised EBS BrokerTec Graphical User Interface (GUI).
The contract provides Icap with a significant foothold in China, with EBS BrokerTec establishing a local office and development centre in Shanghai.
EBS is a critical component of NEX Group, the technology spin-off created by Icap following the sale of its global hybrid broking and associated information businesses to Tullett Prebon.
Icap chief Michael Spencer has defined NEX Group as a "financial technology company, focused on electronic markets and post trade services".
"Icap has invested meaningfully in financial technology over many years, which will continue to be part of the NEX Group plc strategy. Our EBS BrokerTec business has a strong track record of innovation in the development of electronic OTC markets," he says. "China is an extremely important financial market and we are honoured that our long term partner, CFETS, has asked us to collaborate with them to build a significant platform which will play a key role in the future of the renminbi."