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ICAP plc Slides 3% After Guidance, EBS Direct Marked $20 billion in January

by Victor Golovtchenko
    ICAP plc Slides 3% After Guidance, EBS Direct Marked $20 billion in January
    ICAP's electronic tradng business to attract new clients with FIX API 4.4 integration, Photo: Bloomberg
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    ICAP plc has published a trading update for the company’s activity during the fourth quarter of 2015. According to the statement the company’s revenue has declined by 5 per cent when compared to the same quarter a year ago. Considering the substantial drop in Volatility when we look at the period between October and December in 2014, the drop is rather modest.

    Amid benign volatility, the CEO of ICAP plc, Michael Spencer, commented: “Against the backdrop of a difficult market, our business continues to perform well, particularly the Post Trade division which goes from strength to strength.”

    ICAP, ICAP PLC, EBS

    Chart of ICAP's share price since the beginning of 2016, Source: Google Finance

    The shares of the company slipped in London trading after the announcement, currently changing hands at 426 pence. ICAP plc has continued trending lower as the shares of the inter-dealer have lost close to 17 per cent year to date. The decline occurs as the company has agreed to purchase Tullett Prebon’s voice broking business.

    Commenting on the progress of the deal, Spencer elaborated: "The transaction to combine our global hybrid voice broking business with Tullett Prebon is proceeding well, and marks a defining moment in the transformation of the Group into a financial technology business.”

    Electronic markets revenue down 10%

    Revenues from ICAP’s electronic broking business have declined close to 10 per cent in the third quarter, amid declining volumes in U.S. treasuries. While the firm maintained its leadership position in the industry, daily volumes on the BrokerTec platform dropped 11 per cent to an average of $147 billion.

    Looking at the foreign exchange business of ICAP, EBS daily volumes averaged $78 billion, which was lower by 25 per cent when compared to last year. That said, with FX volatility rebounding substantially this quarter, the company’s relationship-based disclosed Liquidity platform, EBS Direct has registered $20 billion per day in January.

    The firm also highlighted the performance of its electronic FX Benchmark Service, e-Fix Matching, where volumes have tripled when compared to a year ago.

    ICAP plc has published a trading update for the company’s activity during the fourth quarter of 2015. According to the statement the company’s revenue has declined by 5 per cent when compared to the same quarter a year ago. Considering the substantial drop in Volatility when we look at the period between October and December in 2014, the drop is rather modest.

    Amid benign volatility, the CEO of ICAP plc, Michael Spencer, commented: “Against the backdrop of a difficult market, our business continues to perform well, particularly the Post Trade division which goes from strength to strength.”

    ICAP, ICAP PLC, EBS

    Chart of ICAP's share price since the beginning of 2016, Source: Google Finance

    The shares of the company slipped in London trading after the announcement, currently changing hands at 426 pence. ICAP plc has continued trending lower as the shares of the inter-dealer have lost close to 17 per cent year to date. The decline occurs as the company has agreed to purchase Tullett Prebon’s voice broking business.

    Commenting on the progress of the deal, Spencer elaborated: "The transaction to combine our global hybrid voice broking business with Tullett Prebon is proceeding well, and marks a defining moment in the transformation of the Group into a financial technology business.”

    Electronic markets revenue down 10%

    Revenues from ICAP’s electronic broking business have declined close to 10 per cent in the third quarter, amid declining volumes in U.S. treasuries. While the firm maintained its leadership position in the industry, daily volumes on the BrokerTec platform dropped 11 per cent to an average of $147 billion.

    Looking at the foreign exchange business of ICAP, EBS daily volumes averaged $78 billion, which was lower by 25 per cent when compared to last year. That said, with FX volatility rebounding substantially this quarter, the company’s relationship-based disclosed Liquidity platform, EBS Direct has registered $20 billion per day in January.

    The firm also highlighted the performance of its electronic FX Benchmark Service, e-Fix Matching, where volumes have tripled when compared to a year ago.

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