Brokerage giant TP Icap, which was formed just last year in a £1.28bn deal, has hoovered up smaller Marylebone-based rival Coex Partners.
TP Icap has paid an initial £7.1m for the firm, although this could rise over the next two years if performance conditions are met.
In the first set of results since Tullett Prebon bought out the voice-broking branch of Icap last December, TP Icap had said it was still on the lookout for acquisitions – although it also slashed 175 jobs as the two firms integrated.
It has already completed its first deal under the TP Icap banner, scooping up Burton-Taylor International in January. More mergers and acquisitions in the sector is expected, as up-coming regulation such as the second Markets in Financial Instruments Directive (Mifid II) squeezes brokers.
The 55 broker-strong Coex, which provides trade advisory and execution services in listed derivatives and over-the-counter foreign exchange, generated £11m of revenues in the first half of this year.
It has offices in Paris and New York and is just three years old, although it has partnered with its new owner since last year.
“The acquisition of Coex is consistent with our strategic aim of building a global institutional services franchise that serves a varied and growing client base,” said Sam Ruiz, the head of TP Icap's institutional services division.
“This deal underlines the momentum within our business as we continue to expand our specialist execution expertise, our product range and client coverage.”