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Interest Rate Options

Used extensively by a wide variety of industry participants, the Interest Rate Options market is one of the most important hedging mechanisms available.

Interest Rate Options (IRO) give the holder a right, but not the obligation, to buy or sell a given government security on or before a specific date. They are generally used to hedge exposure on a bond portfolio.

ICAP has a strong presence in these markets and provides a full voice broking service to our customer base.

We enable customers to trade in IRO that vary in length, and offer experienced voice broking services with an electronic execution. All IRO trades are settled in cash using a scale of 100.

Global broking

ICAP has a strong presence in London’s IRO markets, providing customers with OTC traded options written on Government bonds.

Electronic markets

ICAP's electronic offering for IRO is built around BrokerTec. This state-of the-art trading platform, built for the market by the market, facilitates our delivery of a full suite of liquid interest rate products to the desks of our customers around the world.

BrokerTec delivers efficient, transparent and orderly e-trading opportunities for all market participants, and facilitates both manual and automated trading for the professional market.