LONDON (Reuters) - ICAP (L:IAP), the world's largest interdealer broker, is winding down its financial futures voice broking desk as it cuts costs to counter slumping trading volumes, a source familiar with the matter said.
After an internal review, ICAP decided to reorganise its Global Financial Futures business, which had employed around 50 brokers, to focus on higher value broking activities, a separate source said.
As a result of the restructuring, the head of the desk, Gary Pettit, will leave the broker later this year, both sources said.
Pettit could not immediately be reached for comment.
Interdealer brokers, which match buyers and sellers of currencies, bonds and other tradeable instruments, have seen revenues plunge in recent years, as banks pull back from risky trading to comply with new rules brought in after the financial crisis.
ICAP, like rival Tullett Prebon (L:TLPR), has been trimming costs and pushing further into areas such as electronic trading and post-trade services to diversify revenue streams.
It said last month it had cut 265 broking jobs and closed 21 desks in the global broking division since the start of the year. It did not provide details about which desks had been shut. It is also in the process of renegotiating broker contracts to bring down the ratio of pay to revenue.
It said it was on track to deliver savings of over 60 million pounds this financial year.
(Reporting by Clare Hutchison Additional reporting by Alex Chambers; Editing by Alexander Smith and Mark Potter)