ICAP has revealed a 5% decline in revenues for the third quarter, as CEO Michael Spencer explains its Tullett Prebon deal is on track for completion this year.
The inter-dealer broker reported a 10% decline in its electronic markets revenues for the third quarter of its business year, compared to the same period in the previous year.
Its BrokerTec platform’s average daily volumes in US treasuries were down 11% to $147 billion and FX volatility last year saw ICAP’s EBS average daily volumes fall 35% to $78 billion.
ICAP reported an increase in demand for recently launched e-Fix matching, an electronic FX benchmark service, which saw average daily volumes increase by 300% in the three months to 31 December 2015 compared to the same period in 2014.
Its global broking business reported a 7% decline in revenues for the final three months of 2015, but year-on-year performance in November and December saw some improvement.
ICAP did however see an 8% increase in revenues for its post trade risk and information division, which was driven by demand for its TriOptima’s compression and reconciliation services.
Group chief executive officer, Michael Spencer explained despite the difficult market, ICAP’s business continues to perform well.
He said in the statement: “The decision by the Fed to raise interest rates was very welcome, but we are still operating in an environment of ultra-low interest rates and we have some way to go before we return to more normal market conditions.
“Risk appetite remains subdued and I see few signs that this will pick up any time soon, even after markets began the year with a short burst of extreme volatility.”
Spencer also spoke about the disposal of its global hybrid voice broking business, saying a deal to sell it to Tullett Prebon “is proceeding well.”
He described Tullett’s acquisition of the voice broking business as “a defining moment in the transformation of the group into a financial technology business. We have laid the foundations for our electronic and post-trade businesses to deliver strong, cash generative returns for the future.”
The Tullett deal is on track to be completed this year.