TP ICAP Group has completed the acquisition of Neptune Networks, a bond market data provider, while establishing a partnership with nine major investment banks that will collectively hold a 30% stake in the combined business.

Nine Giants Back TP ICAP's Bond Trading Revolution

The transaction merges Neptune's real-time bond market data network with TP ICAP's Liquidnet electronic trading platform, creating what the company describes as a comprehensive dealer-to-client credit business.

Nicolas Breteau, CEO of TP ICAP

The nine bank partners - Barclays, BNP Paribas, Citi, Crédit Agricole CIB, Deutsche Bank, ING, J.P. Morgan, Morgan Stanley and UBS - will maintain their ownership stake to ensure continued growth and development of the platform.

"Neptune is an exceptional platform with deep connectivity on both the sell-side and buy-side," said Nicolas Breteau, TP ICAP's chief executive. "By combining Liquidnet's extensive client reach with leading liquidity providers, we can seamlessly and discreetly connect the sell-side and buy-side."

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The $1.2 Trillion Deal

Neptune currently processes over 250,000 bond inventory items daily, representing more than $1.2 trillion in gross notional liquidity across credit, rates and emerging markets. The platform serves buy-side firms managing approximately $55 trillion in aggregate assets under management, delivering data from 34 sell-side institutions.

The acquisition comes as electronic bond trading continues its rapid expansion. By November 2024, electronic execution accounted for 43% of total volume in both U.S. investment-grade and high-yield corporate bonds, a substantial increase from approximately 19% and 2% respectively in 2015.

“Together, Neptune and Liquidnet are uniquely positioned to develop competitive alternatives to current data and execution offerings,” said Jonathan Moore, Head of European Credit Trading at Deutsche Bank. “Strong alignment with the dealer community and close ties to the buy-side will set this business apart. The combined offering will be well placed to enhance transparency, efficiency, and liquidity.”

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Bank Backing Signals Market Shift

The participation of major banks as stakeholders reflects broader changes in fixed income market structure. Byron Cooper-Fogarty, Neptune's chief executive, noted that the combination would benefit clients of both firms through enhanced resources and expertise.

"The resources, talent and experience of Liquidnet's Fixed Income business will complement Neptune's strengths in real-time, high quality bond data," Cooper-Fogarty said.

Bank executives emphasized the deal's potential to increase market competition and liquidity. Nick Adragna from J.P. Morgan highlighted the firm's commitment to "promoting market competition and increasing liquidity" through such initiatives.

Paribas's Peter Rafferty characterized the merger as "a significant step in the evolution of the credit markets."

Technology Integration Focus

The combined platform will integrate Neptune's standardized, real-time data feeds with Liquidnet's execution capabilities. Neptune's data comes directly from sell-side trading systems rather than periodic updates or manual processes, and can be accessed through various workflow tools including order management systems and execution management systems.

TP ICAP, which operates from more than 60 offices across 28 countries, previously acquired Liquidnet for $700 million in a deal completed in 2021. The firm provides over-the-counter liquidity and data solutions across financial, energy and commodities markets through brands including ICAP, Tullett Prebon, PVM, Liquidnet and Parameta Solutions.

The Neptune acquisition represents TP ICAP's continued expansion in electronic trading capabilities, building on Liquidnet's network of more than 1,000 institutional investors spanning 57 markets across six continents.

Source: Finance Magnates