Tough Market Conditions Weigh on TP ICAP Revenues in Q1

TP ICAP, , has published an overview of its first-quarter results for 2019 in a trading update ahead of its annual general meeting this Wednesday.
Following on which was plagued by, the firm has reported mixed results for the first quarter of 2019.

For the first three months of 2019, revenue for TP ICAP was £469 million. When measuring this against the same quarter of 2018, revenues are higher – although only just – by 1 per cent.
The London-headquartered firm noted contrasting performances in the business divisions. Namely, the broker achieved solid growth in its Energy & Commodities, Institutional Services and Data & Analytics segments.
Poor Performance in Global Broking Unit Drags TP ICAP Revenues Down
However, this was largely offset by Global Broking, which struggled to overcome a weak market environment, as well as a sustained period of lower volatility and trading volumes.
Specifically, revenues for the Global Broking unit fell by 6 per cent year-on-year to reach £333 million. According to the statement, this was driven by a number of factors.
Namely, challenging market conditions in the foreign exchange (forex), credit and money markets, as well as lower volatility in rates and equities and general weakness across European markets hurt the interdealer broker’s performance in the first quarter of this year.
Revenue in the Energy & Commodities climbed by 7 per cent from the first quarter of 2018 to reach £93 million. The uptick in revenue for the division was thanks to improving market conditions in the Americans and APAC regions, as well as recent investments made in the business.