Interdealer broker ICAP has launched iLinked, the first fully tradeable Delta One equity derivatives platform.
The platform will operate as a hybrid offering traders the ability to transact electronically or by voice. iLinked will initially offer a range of equity-based Exchange for Physicals (EFPs) which will allow traders to access a transparent pool of liquidity across 120 instruments. Other Delta One and equity derivative products will be added in the coming months.
iLinked will be managed by LINK, ICAP’s market-leading equity derivatives broker, and will operate as part of ICAP Securities Multilateral Trading Facility.
Garry Stewart, ICAP’s Managing Director, Equity Derivatives EMEA, says: “Through iLinked, ICAP is the first to respond to customer demand to trade OTC equity derivatives electronically in line with regulatory moves towards greater transparency. We have already signed up 12 banks and expect more to join over the next few weeks. We believe that over time iLinked will add significantly to the liquidity of these products.”
ICAP has been at the forefront of the move towards electronification in OTC markets, most recently with iSwap, its electronic interest rate swap platform. The ability for customers to execute electronically has the potential to improve liquidity and increase transparency. It also allows customers to capture the benefits of automated trading and straight through processing.