ICAP in talks to buy Plus Markets ICAP, the world's largest interdealer broker by market capitalisation, is in talks to buy Plus Markets Group, the UK exchange for fledgling companies that is planning to close after failing to secure a buyer. The London-based broker has been talking to the Financial Services Authority and the Plus board about a deal that would initially preserve the quotations of the 156 companies traded on the market. Without a deal, they would have to go private or seek other trading facilities. In time ICAP would add other products to the exchange, according to two people familiar with the situation. Plus declined to comment. The development represents a shift from Monday, when Plus said that talks with several parties, including interdealer brokers, stock exchanges, technology providers and private equity funds, had foundered. It opted to close after struggling to find the funds to meet the FSA's capital requirements for exchanges. ICAP had been involved in those talks but saw Plus's valuation before Monday as too high. Plus's shares have fallen 70 per cent to 0.3p since the closure plan was announced. For many parties, the chief interest in Plus is its licence as a recognised investment exchange (RIE), granted by the UK regulator six years ago. Holders can operate regulated markets and multilateral trading facilities. Only four other UK exchanges have a licence - the London Stock Exchange, the London Metal Exchange, ICE Futures Europe and Liffe, owned by NYSE Euronext. The status helps attract business from fund managers who are precluded from trading away from RIEs. For ICAP, it would serve as an insurance policy as regulation begins to overhaul trading in the over-the-counter derivatives market. New legislation from Brussels will push more off-exchange trading on to recognised exchanges and electronic venues. An offer for Plus would require approval from its shareholders and the FSA. ICAP on Wednesday announced a 7 per cent fall in full-year pre-tax profit, with weak trading volumes in US corporate bonds. Concerns about the eurozone also crimped trading in interest rate swaps. Additional reporting by Simon Mundy