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The 2016 Tech 50: Michael Spencer

The ICAP CEO holds steady at No. 13 on this year’s Tech 50 ranking.

< The 2016 Tech 5013Michael SpencerChief Executive Officer ICAPLast year: 13

Long before “fintech” became a buzzword, Michael Spencer was charting a course in that direction for the interdealer brokerage, now known as ICAP, that he founded in 1986. Following acquisitions in the early 2000s of e-trading platforms BrokerTec Global and EBS, which were combined last year into EBS BrokerTec, and a ramp-up in posttrade services and R&D investments, London-based ICAP has been redefining itself as a “fintech firm” and “the world’s leading multiproduct global electronic network for over-the-counter products and posttrade services,” says Spencer, 61. To cap it off, ICAP is awaiting regulatory approvals to transfer its voice and hybrid brokering businesses to Tullett Prebon, and plans to rebrand itself as NEX Group. “Our whole focus as a management team will be on these higher-growth, technology-focused businesses,” says the CEO, noting that 79 percent of £1.2 billion ($1.7 billion)-in-revenue ICAP’s operating profit comes from what will be NEX activities. Spencer has his executive team lined up, including CEOs Jenny Knott of Post Trade Risk and Information (PTRI), Gil Mandelzis of EBS BrokerTec, Per Sjöberg of derivatives risk mitigation platform TriOptima and Steve Gibson of venture investment arm Euclid Opportunities. The Euclid portfolio included hedge fund and prime brokerage data platform ENSO Financial Analytics until April, when ICAP bought it outright for the PTRI division. Also this year, Euclid purchased a stake in Digital Asset Holdings (see Blythe Masters, No. 17). “We are not trying to disrupt but are working with the industry,” Spencer says of ICAP’s “practical approach” to blockchain strategy. “PTRI completed a proof-of-technology test of distributed ledger in February, so we are well under way in understanding and experimenting with this technology.” Spencer believes there are countless opportunities to improve financial market efficiency through data and capital management, as TriOptima is demonstrating with its portfolio compression service and OpenGamma, a Euclid portfolio company, is doing with central counterparty margin optimization tools. In June, EBS BrokerTec announced a three-year, $65 million deal to provide next-generation technology for China Foreign Exchange Trade System’s fixed-income and currency execution services. Spencer describes the project as “a significant platform which will play a key role in the future of the renminbi.”

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 The 2016 Tech 50 Click below to view profiles
1. Catherine
Bessant
Bank of America Corp.2. Jeffrey SprecherIntercontinental Exchange3. Lance UgglaMarkit4. Phupinder GillCME Group5. Shawn Edwards and Vlad KliatchkoBloomberg6. R. Martin ChavezGoldman Sachs Group
7. Robert GoldsteinBlackRock8. Adena FriedmanNasdaq9. Deborah HopkinsCiti Ventures10. Daniel ColemanKCG Holdings11. Stephen NeffFidelity Investments12. David CraigThomson Reuters
13. Michael SpencerICAP14. Michael BodsonDepository Trust & Clearing Corp. 15. Charles LiHong Kong Exchanges and Clearing16. Chris ConcannonBATS Global Markets17. Blythe MastersDigital Asset Holdings18. David RutterR3CEV
19. Neil KatzD.E. Shaw & Co.20. Lee OleskyTradeweb Markets21. Richard McVeyMarketAxess Holdings22. Seth MerrinLiquidnet Holdings23. Robert AlexanderCapital One Financial Corp.24. Brad KatsuyamaIEX Group
25. Antoine ShagouryState Street Corp.26. David GledhillDBS Bank27. Lou EcclestonTMX Group28. Andreas PreussDeutsche BÖrse29. Dan SchulmanPayPal Holdings30. Scott DillonWells Fargo & Co.
31. Mike ChinnS&P Global Market Intelligence32. Craig DonohueOptions Clearing Corp.33. Gary NorcrossFidelity National Information Services34. Steven O'HanlonNumerix35. Sebastián CeriaAxioma36. Michael CooperBT Radianz
37. Tyler KimMaplesFS38. Neal PawarAQR Capital Management39. David HardingWinton Capital Management40. Chris CorradoLondon Stock Exchange Group41. Brian ConlonFirst Derivatives42. Jim MinnickeVestment
43. Stephane DuboisXignite44. Mazy DarOpenFin45. Yasuki OkaiNRI Holdings America46. Kim FournaisSaxo Bank47. Jock PercyPerseus48. Robert SchifelliteBroadridge Financial Solutions
49. Brian SentanceXenomorph Software50. Pieter van der DoesAdyen