SELL SIDE

NEX revenues grow despite tough market conditions

Markets business grows despite relative lack of volatility and low interest rates.

By John Bakie john.bakie@strategic-i.com July 12, 2017 9:22 AM GMT

NEX Group has seen revenues grow 10% on a constant currency basis during the first quarter of its financial year.

The market operator and post-trade specialist was formerly known as ICAP, but became NEX last year when it sold its voice broking business to TP ICAP.

The three months to 30 June saw revenues climb 20% on a reported basis and 10% on constant currency with both its markets and post-trade services contributing to the increased sales.

NEX Markets, which runs FX and fixed income electronic trading saw revenue climb 11% on a constant currency basis. Despite rising sales, NEX said trading activity has been held back by low volatility, though has benefited from some activity around major macro events.

Average daily volume of US Treasuries increased 7% to $168 billion in Q1 compared to the same period a year ago. Average volume for US and EU repos climbed 6% and 27% respectively.

The NEX Optimisation business, which focused on operational services to support the trade lifecycle saw revenue grow by 8% on a constant currency basis.

The triResolve reconciliation business saw strong growth, with a 14% increase in users to almost 2,000. Its triReduce compression service also saw strong client demand for interest rate swaps and cross currency compression, NEX said.