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TP ICAP gets trading boost from U.S. election aftermath

Published 06/01/2017, 07:34
Updated 06/01/2017, 07:40
© Reuters.  TP ICAP gets trading boost from U.S. election aftermath
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(Reuters) - TP ICAP (LON:NXGN) Plc, the newly merged financial broking firm, said market reaction after the election of Donald Trump and expectations for interest rate rises helped it post a sharp spike in trading volumes during the final quarter of 2016.

The company, formed after Tullet Prebon bought ICAP's hybrid voice broking unit late last year, said it now expects 2016 revenue to be around 12 percent higher than the 796 million pounds reported in 2015, helped as well by the sharp fall in sterling.

TP ICAP said volatility and market activity increased in the aftermath of the U.S. presidential election in November and on the back of expectations that central banks will start raising interest rates, boosting fourth-quarter revenue across all its product lines.

Interest rate derivatives, fixed income and treasury trading saw the biggest boosts, the British interdealer broker added.

Excluding benefits from currency movements - particularly the sharp fall in sterling - revenue would be up 4 percent, it estimated.

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