TP ICAP buys bond market data provider Neptune Networks

TP ICAP said on Monday that it has bought Neptune Networks, an independent financial data company co-owned by a consortium of investment banks, for an undisclosed sum.

Neptune delivers high-quality, real-time pre-trade bond market data from many sell-side banks to buy-side clients, the interdealer broker said.

"TP ICAP will bring together Neptune’s extensive proprietary data network with Liquidnet’s electronic credit trading platform, creating a unique, full service, global Dealer-to-Client (D2C) credit business," it said.

At launch, Barclays, BNP Paribas, Citi, Credit Agricole CIB, Deutsche Bank, ING, JP Morgan, Morgan Stanley and UBS - the bank shareholders - will own a 30% stake in the new business.

TP ICAP said this ownership structure is intended to ensure that Liquidnet and the bank shareholders are "resourced and incentivised to grow the business".

Chief executive Nicolas Bretea said: "Neptune is an exceptional platform with deep connectivity on both the sell-side and buy-side. With our partners, we plan to enhance and grow Neptune’s core data business, strengthening its relevance to the buy-side via Liquidnet’s electronic credit trading platform.

"By combining Liquidnet’s extensive client reach with leading liquidity providers, we can seamlessly and discreetly connect the sell-side and buy-side to unlock exciting potential, positioning us well to drive a step-change in fixed income markets and liquidity."

Broker Peel Hunt, which rates TP ICAP at 'buy' with a 337p price target, said: "While no financial details were disclosed, we assume the transaction is small in the context of the group, but it should support the growth of the D2C credit platform in the coming years."