ICAP plc Slides 3% After Guidance, EBS Direct Marked $20 billion in January
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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.”
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.”
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 Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term 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.