Discussion in 'Professional Trading' started by ASusilovic, Aug 22, 2007.

  1. ICAP, the giant interdealer broker listed on the London Stock Exchange, announced it has agreed to form a joint venture with an analytic and data company, Radar Logic Inc., for the market-fixing of residential property derivatives prices.

    Radar Logic is the company behind the Residential Property Index (RPX). ICAP will serve as the first authorized broker-dealer for derivatives transactions based on the RPX, which will let users hedge risk on residential property prices in 25 major cities across the United States.

    "The need for these products is highlighted by the recent dislocation and volatility in the U.S. residential property market and the absence of an effective risk mitigation tool," said Doug Rhoten, chief executive of ICAP North America, in a statement Tuesday [Aug. 14]. "We expect a wide array of transactions to be based on the RPX index."

    The prices will be fixed on a daily basis using polling methods similar to those ICAP uses in other fixing and market-benchmark contexts, such as the International Swaps and Derivatives Association swap fixes.

    Source :

  2. Didn't they try something similar a few years ago that had no trading interest?