Cathryn Lyall has left Icap, where she was chief operating officer of exchange projects, and the UK interdealer broker is reviewing its commitment to launch its own derivatives exchange.
Lyall joined the London-based brokerage in March 2008, bringing experience in working at a derivatives exchange. She had been managing director, Emea, of the Chicago Board of Trade, before its acquisition by the Chicago Mercantile Exchange. Before CBoT she worked in the Australian trading and derivatives markets.
A spokesperson for Icap in London confirmed to FOW on March 19 that she had left.
Market participants have suggested Lyall leaving meant Icap was backing away from its application to the UK Financial Services Authority to become a Recognised Investment Exchange, which it submitted in November 2007.
But the Icap spokesperson said this was premature. She said: “Icap is reviewing its exchange projects strategy against the current economic background, with the overall aim of cost control while continuing to invest in growing the business.”
One market source familiar with the situation said attention had shifted towards post-trade clearing and settlement. “The whole derivatives market has changed dramatically,” the source said. “What we are seeing now is a much greater focus on clearing, particularly over-the-counter instruments.”
All quiet on the clearing front
It was revealed in February that Icap was part of a consortium considering a bid for the independent clearing house, LCH.Clearnet.
In October LCH.Clearnet and the Depository Trust & Clearing Corp, the largest US clearing house, had agreed non-binding heads of terms for a takeover of LCH.Clearnet by DTCC at €10 a share.
It is believed some European users of the clearing service oppose the deal, fearing it could allow US regulators to interfere in European markets.
Final terms for the merger were due to be agreed by March 15, but that deadline has since been put back to the end of March. An LCH.Clearnet spokesperson told FOW on March 9 that she did not expect the deadline to be met, as due diligence was still going on.
“March 15 was always an aggressive timetable – there is no particular reason why we needed to close the deal by then,” she said.
Once the detailed terms of the deal are agreed, they will have to be presented to shareholders for their approval.
However, Icap’s putative bid has not made rapid progress either. The LCH spokesperson said on March 9: “We received an approach about an offer, but there has been no change since then.”
Newspaper reports quoting unnamed sources have also suggested LCH.Clearnet has floated a third option, in which it would buy itself back from its 120 shareholders and then invite users to buy back into it, creating a user-owned utility.
However, LCH.Clearnet has refused to confirm or comment on these reports.