ICAP is looking to China NEX.

The London broker, which plans to rebrand to NEX Group after agreeing a £1.1bn deal to sell its global broking business to its once bitter rival Tullett Prebon, is going expanding east through another deal with China Foreign Exchange Trade System (CFETS).

CFETS, which is China’s official inter-bank market trading platform, has appointed ICAP to provide the technology for fixed income and foreign exchange electronic execution services in the country.

The deal is valued at $65m over three years and will lead to the establishment of a local office in Shanghai by EBS BrokerTec, ICAP’s electronic FX and fixed income business. EBS will form part of the NEX Group once the deal with Tullett is completed, which is expected by the end of the year.

It won’t be the first time ICAP and CFETS have worked together – more than nine years ago they founded Shanghai CFETS ICAP, a joint venture to providing broking and information services in the onshore and offshore interbank foreign exchange, money market, bond and derivatives market.

ICAP’s new brand name and logo have drawn parallels with the higher street retailer Next but chief executive Michael Spencer has denied the possibility of any confusion, saying last month that it was “highly improbable that there would be confusion with a well-known high street chain”.

On the Chinese deal he said:

China is an extremely important financial market and we are honoured that our long term partner, CFETS, has asked us to collaborate with them to build a significant platform which will play a key role in the future of the renminbi (RMB).

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