TP ICAP Issues Trading Update Ahead of 2016 Results Announcement
- The group has reported a YoY increase in trading activity for Tullett Prebon and revenue growth across all product lines.
TP ICAP plc today issued a trading update ahead of the close period for the year ended 31 December 2016. The figures included are unaudited and relate to trading performance for the 12 months to 31 December 2016 for the Tullett Prebon business only.
The company is expected to announce its preliminary results for the year ended 31 December 2016 on 14 March 2017.
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Results
The last three months of 2016 saw an increase in trading activity for Tullett Prebon compared with the prior year. Revenue for the year ending 31 December 2016 is expected to be approximately 12 percent higher than the £796 million reported in 2015, and 4 percent higher at constant exchange rates.
It has also been reported that the business delivered revenue growth across all product lines in the fourth quarter and in particularly with its 'heritage' products of Interest Rate Derivatives, Fixed Income and Treasury Products. The aftermath of the US presidential election and the expectation of future interest rate rises have seen an increase 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term and market activity which has particularly benefited these products.
The acquisition of NEX Group’s global hybrid voice broking and information business completed on 30 December 2016 and an extensive integration plan has swiftly moved to the implementation phase. Guidance on the financial performance of the combined business will be provided together with a 2016 pro forma result for the aggregated business when the preliminary results are presented in March.
TP ICAP plc today issued a trading update ahead of the close period for the year ended 31 December 2016. The figures included are unaudited and relate to trading performance for the 12 months to 31 December 2016 for the Tullett Prebon business only.
The company is expected to announce its preliminary results for the year ended 31 December 2016 on 14 March 2017.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Results
The last three months of 2016 saw an increase in trading activity for Tullett Prebon compared with the prior year. Revenue for the year ending 31 December 2016 is expected to be approximately 12 percent higher than the £796 million reported in 2015, and 4 percent higher at constant exchange rates.
It has also been reported that the business delivered revenue growth across all product lines in the fourth quarter and in particularly with its 'heritage' products of Interest Rate Derivatives, Fixed Income and Treasury Products. The aftermath of the US presidential election and the expectation of future interest rate rises have seen an increase 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. 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 can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term and market activity which has particularly benefited these products.
The acquisition of NEX Group’s global hybrid voice broking and information business completed on 30 December 2016 and an extensive integration plan has swiftly moved to the implementation phase. Guidance on the financial performance of the combined business will be provided together with a 2016 pro forma result for the aggregated business when the preliminary results are presented in March.