About ICAP Energy

With more than 200 staff across its offices worldwide, ICAP Energy is the energy-focused commodity arm of ICAP plc, providing coverage of base and precious metals, emission credits, crude oil and oil products, electricity, natural gas, coal, freight and weather derivatives. ICAP Energy is the leading energy broker with operations in London, Amsterdam, Bergen, Madrid, Singapore, Sydney and seven centres across North America. With some seventy staff in London and Singapore, we cover Crude Oils and Oils Products, Bullion and Precious Metals, UK Electricity, Natural Gas, Coal, Emission Certificates and Weather Derivatives. Our office in Amsterdam, meanwhile, specialises in the three important continental Electricity Markets. In Scandinavia, our Bergen office maintains a leading position in the specialist Nord Pool markets, and related Green Certificates.

ICAP has built a dedicated capability to broker OTC Electricity derivatives in tandem with the deregulation of European electricity markets. ICAP has a leading market position in UK electricity derivatives, offering both a screen-based and voice-brokered service. The team also covers the forward markets for the Continental Electricity market, particularly in the German, French, Dutch, Austrian and Swiss Electricity markets.

ICAP is the leading specialist in derivative products to hedge price movements in crude oil and oil products. Though its offices in London and Singapore, ICAP Energy creates coherent and visible two way markets in the more actively traded products.

In January 2005 ICAP established a joint venture with J.E. Hyde to address the growing markets for Freight Forward and Shipping derivatives. This combines J.E.Hyde's longstanding expertise in the shipping markets with ICAP's strengths as a commodity and commodity derivative brokerage.

From January 2005, the new EU directive on emission trading will come into effect. The new legislation means that companies across 25 countries must incorporate climate change into their commercial decisions. The EU scheme will set limits on the emissions on carbon dioxide from energy-intensive sectors. Companies reducing emissions to a level below their limit can sell this over-achievement to other companies above their limit; or "bank" it for future use. A company's strategy will largely depend on the price at which emission reductions are traded. The emission allowances may change hands in the OTC market. Our broker-service now also covers negotiating of such allowances.

ICAP offers the wholesale market a comprehensive service in all areas of precious metal broking. The business is centred around Gold, Silver and Platinum Group Metals (“PGM”), all of which are traded for value spot and forward, together with more structured options and interest rate swaps. ICAP acts as an independent, name-passing broker, offering clients an integrated 24 hour operation through ICAP’s offices in London, New York and Sydney. The unit’s success was recognised by Risk magazine with a first place ranking.

ICAP is committed to developing the Group's commodity activities into Base Metals. This is a marketplace which is changing in nature, as technology- driven solutions find increasing application. As brokers, ICAP already have a strong and longstanding presence within international Precious Metals.

In 2006, ICAP Energy was again named Broker of the Year by Energy RISK magazine in a poll of market participants.

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