US Inter-Dealer Broker takes on London Market with New European HQ
Phoenix Partners Group today opens its doors in London to broker credit default swaps
2006.10.23 : London – Following the lead of its New York office, Phoenix Partners Group today opens its doors in London to broker credit default swaps (CDS). Phoenix London will broke mainstream CDS and specialize in developing niche CDS markets such as short end, but will continue to offer both voice and electronic brokerage as they become more commoditized. At launch the primary focus will be on off-the-run high yield as well as some high-grade sectors.
Initially the majority of business will be voice executed; however, Phoenix Partners has a voice/screen hybrid solution ready to roll out as well as full STP capabilities. Additionally a click and trade solution is ready to be deployed when clients require it. Cutting edge technology, which has been tried and tested in the New York office since August 2005, has been deployed in the Canary Wharf office.
Nick Stephan, founding managing director and CEO of Phoenix Partners Group, commented, “As new markets become increasingly commoditized, we will continue to compete through the use of electronic platforms; however, we will not stop identifying, developing, and fostering voice broked niche markets.”
The London office represents another step in Phoenix’s aggressive sector and geographic growth to exploit the rapidly expanding market. According to the International Swaps & Derivatives Association (ISDA), the credit derivatives market has doubled in size each year since 2003 and on the current trajectory could exceed an outstanding notional of USD 34 trillion by the end of 2006.
Phoenix Partners Group, launched in New York in August 2005 and rapidly amassed more than 200 brokerage clients focusing on CDS broking. In under a year the company established itself among the top three by volume in New York for Index (2), Banks and Fins, Brokers (1), Agencies (1/2), Utilities, Oil & Gas, Grocers, and Homebuilders.
Alex Hucklesby and Graham Smith, who have both been appointed as managing directors, are heading the UK business. Hucklesby and Smith have worked together for several years building successful CDS desks, most recently at Mint Equities. Prior to this Hucklesby held senior broking positions at Cantor Fitzgerald and Icap.
CEO, Nick Stephan is coordinating the international rollout and will be supporting the London office splitting his time between New York and London. Phoenix London will be announcing a series of senior hires over the coming months to bolster the core broking team. Administrative and support staff are already in place.
Phoenix has a proven track record in New York built on providing optimum liquidity, trade-execution and responsive post-trade support. Integral to this is a commitment to recruit only the best talent while employing state of the art technology. The same strategy is being applied in London, which should allow Phoenix to start on a level playing field with the existing principal players in the London market from day one.
Nick Stephan added, “Alex and Graham are well respected, top class brokers with entrepreneurial flair as business managers. This, coupled with our proven technology, means we can give the established players a run for their money from the outset.”
Alex Hucklesby, London managing director of Phoenix Partners Group, continued, “With the long term commitment from a strong New York operation and the strategy for best-of-class recruitment and technology, we are well positioned to achieve competitive status in high yield and high grade CDS. We are committed to replicating the impressive growth our partners in New York have achieved.”