TP ICAP Acquires Neptune to Create Global D2C Credit Platform

TP ICAP Group PLC, a global leader in financial markets infrastructure, has officially acquired Neptune Networks, an independent financial data provider. This acquisition represents a strategic consolidation of financial data and electronic credit trading capabilities, positioning TP ICAP to create a full-service global Dealer-to-Client (D2C) credit business by integrating Neptune with its Liquidnet platform.

Strategic Rationale Behind the Acquisition

Why Neptune?

• Neptune Networks is a leading source of high-quality, real-time pre-trade bond data.
• Provides critical connectivity between sell-side banks and buy-side clients.
• Currently backed by a consortium of top-tier investment banks.

TP ICAP’s Vision

• Integrate Neptune’s data capabilities with Liquidnet’s electronic trading.
• Deliver a unified, seamless D2C solution for the global credit market.
• Enhance market transparency, efficiency, and liquidity across platforms.

New Ownership Structure and Stakeholders

Equity Distribution

• At launch, bank shareholders (Barclays, BNP Paribas, Citi, Crédit Agricole CIB, Deutsche Bank, ING, J.P. Morgan, Morgan Stanley, UBS) will jointly hold a 30% stake in the new business.
• This structure ensures continued collaboration and alignment between data providers, trading platforms, and liquidity partners.

Executive Perspectives on the Deal

Nicolas Breteau, CEO, TP ICAP

• Describes Neptune as a platform with deep buy- and sell-side integration.
• Emphasizes plans to expand Neptune’s value through Liquidnet’s trading reach.
• Aims to revolutionize fixed income markets through data-driven connectivity.

Byron Cooper-Fogarty, CEO, Neptune Networks

• Sees strong alignment between Neptune’s data strength and Liquidnet’s market access.
• Believes the acquisition will enhance service to both buy-side and sell-side clients.

Support from Leading Investment Banks

J.P. Morgan – Nick Adragna

• Welcomes the initiative for market competition and improved liquidity.
• Notes the integration will boost efficiency and value for all market participants.

Deutsche Bank – Jonathan Moore

• Highlights how the union offers competitive alternatives in the credit trading space.
• Stresses the importance of dealer alignment and buy-side engagement.

BNP Paribas – Peter Rafferty

• Labels the acquisition as a step forward in the digital evolution of credit markets.
• Supports the creation of a more connected, data-driven trading environment.

Crédit Agricole CIB – Pierre Scemla

• Notes growing demand for solutions combining analytics and execution.
• Reaffirms support for continued innovation in credit market infrastructure.

Market Context: A Shifting Landscape in Credit Trading

Trends in Bond Market Electronification

• As of November 2024:
  • 43% of U.S. Investment Grade and High Yield bond trades are executed electronically.
  • In 2015, those figures were 19% (IG) and 2% (HY).
• Indicates a dramatic shift toward automated and data-driven bond trading platforms.

The acquisition of Neptune by TP ICAP, and its integration with Liquidnet, signals a pivotal moment in the evolution of the global credit trading ecosystem. By merging advanced pre-trade data with electronic execution capabilities, the newly formed D2C platform will offer a comprehensive, efficient, and future-ready solution. This bold step reinforces TP ICAP’s strategic focus on innovation and marks a transformative phase in fixed income market infrastructure.