Interdealer broker TP ICAP plc (LON:TCAP) published an update on its Brexit readiness plan on Monday, announcing the establishment of a French subsidiary to continue its European operations.
The London-listed company has already capitalized on the new subsidiary, TP ICAP Europe SA (TPIE), but the pandemic has restricted the migration of staff for full-fledged operation.
“It has not yet been possible to complete the relocation of staff to the EU 27 or the local hiring of brokers in the EU-based offices of TPIE as quickly as originally planned” due to the pandemic, the company detailed.
“TP ICAP confirms its commitment to complete the relocation of staff to the EU 27 and the local hiring of staff in the EU-based offices of TPIE at the earliest opportunity.”
Headquartered in London, the company already restructured, forming a new holding company based out of Jersey. Though the company expected to receive temporary permissions to operate in the 27-country bloc, the French regulators clarified entities need to be operating within the EEA to offer services in the region.
“TP ICAP's UK-based authorized subsidiaries continue to service clients based in certain EU 27 member states where possible under available temporary permission regimes, existing third-country access rights, or as otherwise permitted by applicable laws and regulations,” the latest LSE filing stated.
Major Acquisition in the Pipeline
Meanwhile, TP ICAP is in the middle of acquiring private trading operator, Liquidnet Holdings and its subsidiaries and agreed to pay anywhere between $575 million and $700 million. It is raising approximately £315 million ($427 million) with rights issues to finance the acquisition deal.
Additionally, the company witnessed a 19 percent decline in its broking business with total revenue of £260 million and is expecting a 1 percent drop in its annual volume.
“TP ICAP does not expect any material impact on the Group's global broking business or its financial results as a result of any of the matters disclosed above, including any temporary reduction of services provided to clients based in the EU 27,” the company stated.
