XTX Markets Posts Healthy Revenue and Profit Uptick for 2019

The liquidity provider incorporated a French entity as preparation for Brexit.

XTX Markets, a leading non-bank liquidity provider in the forex industry, published its annual financials ending on December 31, 2019, showing a year-on-year revenue jump of 11.3 percent with a total of £339.8 million for the year.

“The current primary key performance indicator of the Company is net revenues,” the Companies House filings noted.

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This jump was propelled by the internal trading model improvement and favorable market conditions, according to XTX Markets.

With a reduced operating expense, the trading company generated a total profit of £197 million before taxes, while after-tax profit remained at $138.7 million – a jump of 19 percent from last year.

The net profit margin of the Financial Conduct Authority (FCA)-regulated company, after taxation, jumped to 41 percent in 2019 from 38 percent in the previous year. 

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The healthy uptick for the year followed aggressive revenue and profit growth of XTX Markets in 2018 as both figures almost doubled for that year.

“In 2019, the Company became the largest Spot FX liquidity provider globally (Euromoney 2019) and also the largest European equities (systematic internalizer) liquidity provider (Rosenblatt 2019) as it built out its growth client franchise,” the company highlighted.

The shareholders’ equity of XTX also increased by 27 percent to £258.3 million after the company retained £83.6 million in profits used to pay interim dividends to the parent group. This will be utilized to fund other entities of the XTX Group for operational purposes.

Well Prepared for Brexit

The director of the company also addressed the concerns related to Brexit and the impact of COVID-19 in the markets.

“Brexit and more recently COVID-19 pandemic continue to bring uncertainty to global markets,” the filing added. “The Company is well prepared for any post-Brexit impact of the United Kingdom leaving the European Union (EU). To this end, a French legal entity, XTX Markets SAS was incorporated as a sister company. The Company appropriately repositioned its trading book during 2019.”

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