TP ICAP has set up a new business, Parameta Solutions, to provide a flagship brand for its data and analytics division. It is due to be opened officially next week.
Parameta’s data and analytics offerings will include unbiased OTC content and proprietary data, in-depth insights across price discovery, risk management, benchmarks and indices, and pre and post-trade analytics.
On the post-trade side, Parameta aims to help market participants control counterparty and regulatory risk through a growing range of tools for managing balance sheet exposure, as well as compression and optimisation services.
According to Eric Sinclair, CEO of Parameta Solutions, the new brand will bring greater visibility and strength to the solution set formerly within TP ICAP’s data and analytics division. “We needed a global data brand to represent our franchise as an information business, as distinct from TP ICAP’s IDB business. The Parameta brand gives that distinction,” he says.
In March 2021, TP ICAP completed its £700 million acquisition of LiquidNet, whose investment analytics division will also be rolled into the Parameta brand, along with a range of TP ICAP’s post-trade services. “With such a strong foundation of data and analytics, we’ll have greater capability to do more for our clients, a far richer offering, and a skill set among our team that is richer than it has ever been,” says Sinclair. “Given our expanding capabilities, we’ll also be able to make more partnerships and move up the value pyramid.”
As well as aiming for greater penetration into TP ICAP’s existing customer base, Parameta is looking to expand to a wider customer base. “We have a growing presence in the middle and back office, particularly around risk management and compliance,” says Sinclair. “Our new capabilities appeal to the buy side, not only asset owners and asset managers, but also corporates needing inside market pricing levels from a premier OTC source. So we’re expanding our addressable market to include the buy side and corporates, particularly on the energy and commodities side. This is an important growth opportunity for us.”
Sinclair says Parameta will shortly release a webstore that will allow clients to license its products online via the cloud. “Clients will be able to acquire our products in the same way as they go onto Amazon and order books,” he says. “That self-service capability will be very attractive, particularly for hedge funds that want to act quickly when they see an opportunity in the market.”
TP ICAP’s data and analytics division posted a 9% increase in revenues (in constant currency) at £145 million in 2020. Other brands within the division include Tullett Prebon Information, PVM Data Services, ICAP Information, Liquidnet Investment Analytics and Burton Taylor Consulting.