TP ICAP’s October gilt tariff raises brokerage for mid-maturity linkers

TP ICAP has updated the GEMM-gilt section of its ICAP UK organised trading facility tariff, effective 20 October. The notice concerns the ICAP fee schedule, so desks should identify the applicable brand and market segment before changing their brokerage calculations.[1]

The new card charges £40 per £1 million for index-linked bonds above five years. Its published July schedule charged £20 between three and under ten years.[2][3]

Illustratively, £25 million of six-year linkers produces £1,000 of headline brokerage under the October card, versus £500 under July’s terms. The £500 difference excludes any separately agreed pricing.[2][3]

On outright trades, the aggressor pays. For switches, the passive central-limit-order-book initiator pays half the headline rate, with a £5 minimum; cross-band switches use the longer bond’s rate on the purchased bond.[2]

GEMMs are the primary dealers that support UK government-bond issuance and quote two-way prices to customers. Interdealer brokers facilitate anonymous trading between them, according to the Debt Management Office. That makes this tariff relevant to dealers’ inventory management and execution budgets, rather than a universal customer commission schedule.[4]

The operational task is to match each transaction’s maturity and trading role to the applicable charge. A dealer comparing venues should add brokerage to the executable price and the cost of completing the trade; a smaller commission alone does not determine the better result.

Report an error or submit an update