ICAP plays down Libor role ICAP, the world's largest inter-dealer broker by revenues, on Wednesday played down its role in the Libor interest rate rigging scandal as it suffered a further slowdown in its trading business. Michael Spencer, chief executive, said the global regulatory investigations into the setting of inter-bank rates were not a "high concern" as his company was not "front and forward" in investigations. ICAP trades some Libor-related instruments but does not participate in the rate-setting process. Nevertheless, two of its traders are on administrative leave while authorities in the US and UK carry out investigations into alleged attempts by banks to artificially rig the lending rate. The scandal has already ensnared Barclays and prompted the resignation of Bob Diamond, its chief executive. Mr Spencer's comments came as the group reported a 9 per cent decline in first- quarter volumes as the eurozone crisis and UK public holidays hit trading sentiment. Inter-dealer brokers such as ICAP and Tullett Prebon act as intermediaries between brokers in the bond, interest rate derivatives and foreign exchange markets, and as such are reliant on volatility and market demand. Investment banks have been avoiding risky trades and many have also started cutting trading jobs. Mr Spencer said voice broking had been "especially challenging" in the period adding: "The Federal Reserve's decision to extend Operation Twist and the lack of aggressive action to resolve the eurozone crisis is not helping to normalise financial market activity in the near-term." Average daily volume on its electronic currency and fixed income platforms dropped 19 per cent to $712bn compared with a year ago. Mr Spencer also told analysts that the performance of iSwap, its electronic market for trading euro interest rate swaps, had been "disappointing" and it needed regulatory clarity. The platform accounted for 10 per cent of ICAP's turnover in euro swaps, compared with 20 per cent of turnover after its first year of operation last September. "We're waiting for a resolution to Dodd-Frank," he said, referring to the incoming act which will overhaul trading of derivatives in the US. Some of the key rules, which are intended to increase transparency in the $648tn derivatives market, were passed on Tuesday by the Commodity Futures Trading Commission. More trades will have to be conducted on electronic venues and deals reported to repositories. ICAP also brought forward a programme aimed at trimming £50m of annual costs. The group said the target would be hit by its March year end, rather than March 2014 as first anticipated, and savings would be "substantially higher" next year. About 88 per cent of shareholders approved ICAP's remuneration report at the group's annual meeting on Wednesday, compared with a 33 per cent vote against it a year ago. ICAP undertook a review of its pay policy for the first time in eight years in the aftermath. It forecast full-year profits for the year to March 31 would be in the middle of analysts" forecasts of £335m-£365m. Shares in ICAP rose 1.8 per cent to 316.56p.