Tullett Prebon’s interest rate derivatives revenues fell by almost a quarter in the first half of this year, as the interdealer broker (IDB) has announced it will make 210 job cuts across its front and back office.
Regulatory uncertainty and a lack of volatility in interest rates has hampered IDB results across the board, with ICAP reporting similar declines earlier this month.
Tullett’s interest rate derivatives revenue fell to £70 million from £93 million in the first half of 2013.
Overall revenues dropped by 15%, and as a result, Tullett is looking at cutting costs by over £40 million through the cutting of 160 front office and 50 back office employees.
“Market conditions remained challenging throughout the first half as the overall level of activity in the financial markets remained subdued,” said Terry Smith, chief executive.
"We expect that the benefit of the actions being taken to further reduce headcount and other fixed costs will be reflected in the results for the second half of this year.”
Smith is set to step down from the role in August, handing the position over to former Nomura and Lehman Brothers executive John Phizackerley.