(Corrects overall revenue in last paragraph to “1,833 million pounds” from “1.833 million pounds”)
March 10 (Reuters) - TP ICAP said on Tuesday the volatility in financial markets from ongoing uncertainties were creating market opportunities for the world’s largest inter-dealer broker.
“The overall macroeconomic backdrop remains uncertain driven largely by COVID-19, global growth and ongoing Brexit negotiations,” Chief Executive Nicolas Breteau said.
“While this environment impacts our clients’ activity, the resulting volatility also creates market opportunities that gives us confidence for the future.”
Market volatility bodes well for inter-dealer brokers like TP ICAP as it means more transactions from their clients. The previous year too was marked by uncertainty-inducing events like the U.S.-China trade war and Brexit.
In 2020, the CBOE Volatility Index, considered to be Wall Street’s “fear gauge”, scaled a two-year high as markets were rattled by fears over the impact of the coronavirus outbreak on global economic growth.
TP ICAP, created after Tullet Prebon bought rival ICAP’s broking business, also said pretax profit jumped to 93 million pounds ($121.24 million) for the year ended Dec. 31, from 62 million pounds a year earlier, due to strong growth in its energy and commodities business.
Overall revenue grew 4% to 1,833 million pounds for the year. ($1 = 0.7670 pounds) (Reporting by Muvija M and Chris Thomas in Bengaluru; Editing by Shailesh Kuber)