ICAP, the world's biggest broker of transactions between banks, is downsizing its so-called voice broking unit to concentrate on investments in the more profitable areas of electronic broking and post-trade services.
Reuters reports that interdealer brokers like ICAP, whose staff match buyers and sellers of currencies, bonds and other tradable instruments, have been hit hard by regulations that led their traditional investment bank clients to cut back on dealing and forced more trading on to electronic platforms.
ICAP Chief Executive Michael Spencer confirmed on Wednesday he was cutting staff in the company's Global Broking division, which houses its brokers, although he declined to say how many jobs were at risk and which desks would be affected.
'We decided we needed a fundamental resizing of that business for what we believe is the new world order in our industry', Spencer said.
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