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Leslie Kramer
Leslie Kramer
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ICAP and Central American Bank for Economic Integration Form Joint Venture

ICAP, an interdealer broker, has formed a joint venture with the Banco Centroamericano de Integracion Economica (BCIE), a multilateral bank formed by Central American governments and a source of multilateral financing for integration and development of Central America.

ICAP and BCIE (known in English as the Central American Bank for Economic Integration or CABEI), will each own fifty percent of a new company called BCIE-ICAP Capital Markets S.A. de C.V., based in Mexico City. By providing essential credit enhancement and clearing services for local counterparties, BCIE-ICAP expects to overcome the credit limitations that have slowed down the development of the financial markets in Central America. As a result, BCIE-ICAP will be able to provide a dynamic voice and electronic brokerage platform for Central American financial products, both within the region and globally.

BCIE Acting Executive President Nick Rischbieth said in a press release, “We are pleased to partner with ICAP in this exciting new venture. The absence of a central clearing authority and limited available credit is having an adverse effect on the ability to trade certain financial products in the Central American region. We are addressing these needs by launching this new business which offers credit-worthy institutions access to the Central American markets and will in turn provide the liquidity and risk guarantees these markets need to grow.”

Under the terms of the new agreement, BCIE will provide credit enhancement so that regional companies can participate in global markets. Through ICAP, global traders will have improved access to the Central American fixed income, foreign exchange, and credit markets. “We are honored to partner with BCIE, a well-known and highly-regarded financial organization in Latin America. This venture brings together BCIE’s considerable experience in developing the Central American financial marketplace with ICAP’s international expertise, network, and dominant OTC market share. We see enormous potential for growth in Latin America, and this new partnership gives ICAP and our customers entry into this burgeoning economy,” said Doug Rhoten, chief executive officer of ICAP Americas, in a press release.

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