ICAP is a voice and electronic interdealer broker that operates in interest rates, foreign exchange, credit, commodities, emerging markets, and equity derivative OTC markets where trading spreads and volume command earnings. Primarily a voice broker by revenue and operating profit, the company as well as the industry is moving toward the fast growing, higher margin electronic broking. As of 2011, ICAP had approximately a market share of 25% in voice broking and a 45% in electronic broking. The electronic broking industry is characterized by high entry barriers and large economies of scale, giving ICAP’s dominant position an added benefit. The company is well prepared for regulatory changes towards more transparent and electronic markets giving the company an edge, but regulatory risk remains should authorities implement new rules which would impede transaction volumes in the OTC markets. Strong demand for post trade risk information (PTRI) services, which are neglected by peers, should bolster earnings and revenue growth and differentiate the company.