Broker-dealer ICAP reports small rise in revenues
LONDON, July 10
LONDON, July 10 (Reuters) - British broker ICAP reported a slight rise in revenues in its first quarter, after trading of bonds and futures jumped on the prospect of a slowdown in U.S. money printing.
However, the low interest rate environment constrained demand for ICAP's risk mitigation services, while trading in commodities also fell because of a pullback by investment banks in the area, offsetting rises in fixed income trading, the firm said in a statement covering the period April 1 to July 10.
ICAP said its businesses group revenue rose 2 percent versus a year earlier. The company did not give an exact figure for revenues.
The broker-dealer, which competes with rival Tullett Prebon to match buyers and sellers of bonds, currencies and swaps, has benefited from a jump in volatility and trading volumes in recent months.
"We have made an encouraging start to our financial year. Trading activity in most markets appears to have stabilised and there has been a welcome increase in volatility in some asset classes, which has generated additional trading volumes," Chief Executive Michael Spencer said in the statement.
The results follow a tough 2012 for ICAP, described by Spencer as an "extraordinarily tough year" after profits fell 20 percent.
"It remains far too early to say that we are seeing a sustained upturn, but current conditions give us confidence that we can deliver on expectations for the year," Spencer added.