TRADING VENUES

NEX Group’s EBS and BrokerTec platforms see Trump trading boost

NEX Group is the latest to report a surge in trading activity following the US election result.

By Hayley McDowell hayley.mcdowell@strategic-i.com February 15, 2017 10:08 AM GMT

The EBS and BrokerTec trading platforms at NEX Group saw a surge in activity following the US election, driving an increase in revenues across the business in the Group’s third quarter.

NEX Markets - formed of the EBS and BrokerTec trading platforms - reported a 15% increase in revenues on a constant currency basis during the third quarter compared to the same period last year.

The US election generated increased volatility across both platforms in fixed income and foreign exchange trading, leading to BrokerTec’s second highest volume day with more than $437 billion transacted.

NEX explained: “The US election and uncertainty around the new administration’s policies regarding international trade and the potential impact on inflation triggered significant volatility in dollar/yen, one of the major currency pairs on EBS Market.”

A surge in trading activity in Asia currencies saw average daily volume on EBS increase 23% to $96 billion in the third quarter compared to the same period last year.

Michael Spencer, chief executive officer at NEX Group, explained: “After Trump’s election victory we benefited from an increase in trading activity as market participants considered the impact of potential policy changes on bond and foreign exchange markets.

“Both of our electronic platforms, BrokerTec and EBS, performed robustly under heightened volumes, providing our customers with non-stop access to liquidity.”

NEX reported group revenues surged 11% in the third quarter compared to the same period last year, up 4% annually for the year-to-date.

TP ICAP also reported a surge in trading activity in the fourth quarter of 2016 following market volatility from Donald Trump’s election.

Annual revenues are expected to be 12% higher than 2015, when sales stood at £796 million, and 4% higher at constant exchange rates, TP ICAP said.

The firm’s acquisition of ICAP’s global hybrid voice broking business officially closed on 30 December 2016 and its integration plans have now moved towards implementation.

Following the acquisition, ICAP rebranded as NEX Group and has shifted its focus to electronic markets and post-trade services.