Mixed performance sees ICAP revenues drop

Interdealer broker ICAP saw a slight fall in revenues in Q2 after seeing mixed results across its business lines.

Interdealer broker ICAP saw a slight fall in revenues in Q2 after seeing mixed results across its business lines.

Revenue dropped 1% compared to Q2 2014 on a constant currency basis, though the firm said it has lowered its cost base over the period.

FX volumes saw the biggest gains, with average daily volume traded on its EBS platform up 34% to $98 billion in Q1 as FX volatility recovered from historic lows. The EBS Direct service, which offers disclosed, relationship-based liquidity, was particularly strong with 250 new customers in the pipeline and average daily volume of $17 billion in Q2, up from $8 billion in Q1.

BrokerTec trading volumes were also up. US Treasuries increased 7% to $172 billion while US repo climbed 5% to $217 billion. However European repo was down 7% to €179 billion.

Post trade revenue dipped by 2% during Q1 compared to the same period last year. However, ICAP said demand for its triResolve and triReduce products was strong, with particularly high demand for compression in Asia.

It global broking business also saw sales fall, down 3%, suggesting ongoing structural and cyclical factors were continuing to affect the division.

Michael Spencer, group CEO of ICAP, said: “Against a backdrop of mixed market conditions we have started the year a leaner business, set for long-term growth and increased profitability.  We’ve continued to focus on expanding our addressable market by developing new products and services which will cater for a wider customer base.”

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