EBS acquired by ICAP

Discussion in 'Forex Brokers' started by 2cents, Apr 21, 2006.

  1. things are a-changing... Hotspot got acquired by Knight a couple weeks back... they are considering publishing time & sales info same as CME... now EBS acquired by Icap... time to take a second look at ETC methinks... any thoughts anybody?
  2. attachment...
  3. Interesting stuff, thanks. No deep thoughts... other than noting that investors are apparently loving this news. ICAP's shares (ICAP.L) surged over 10% on the news, despite the dilution. Currently up nearly 50p to 526+ from yesterday's close at 477.25, and were as high as 539.50 today. Also up about 100% over the last year.

    There's a more detailed press release on ICAP website, if anyone's interested. One set of numbers that struck me was that EBS had operating profit of $37M on revenue of $206M in 2005 (revenue up 10% from 2004). Now, EBS processed around $33.8 trillion in spot forex transactions last year ($130B x 260 days). That's ignoring their gold, silver, etc. flows, a small fraction by $ value... but, hey, give it a bit more time, what with those parabolic rises resuming any day now.

    So, their top line is 0.000006 = 0.0006% of that forex flow figure, while their bottom line is 0.000001 = 0.0001%. Painfully obvious conclusion: if you can grab a ridiculously tiny slice -- 1/100th of a pip, so to speak -- of a huge, second-by-second, perpetual business -- say, ~6% of the global spot forex pie -- you get to be a nearly Billion-dollar company in your own right. :D
  4. Huge news. thanks
  5. Not suprised by the pop in ICAP. Smart move.