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TP ICAP Commodity Brokers Save Company From a Dire Quarter

Published 2019-05-15, 03:12 a/m
Updated 2019-05-15, 05:33 a/m
© Reuters.  TP ICAP Commodity Brokers Save Company From a Dire Quarter

© Reuters. TP ICAP Commodity Brokers Save Company From a Dire Quarter

(Bloomberg) -- The world’s biggest interdealer broker was bailed out in its first quarter by its non-core operations.

TP ICAP (LON:NXGN) dreadful quarter in its main broking business was offset by a 7% revenue increase in its energy and commodity operations, while its institutional services division, which matches trades for hedge funds, grew sales by 33%. Lower volatility and hence smaller volumes in rates and equities pulled revenue in global broking down 6% to 333 million pounds ($430 million).

“The uncertainty created by Brexit, the softening of the Fed’s interest-rate stance, and the potential for more quantitative easing in the eurozone has impacted our traditional banking customers’ first-quarter performance, weighing on market volatility and volumes,” Nicolas Breteau, TP ICAP’s CEO, said in the company’s statement.

TP ICAP’s overall revenue climbed 1% t to 469 million pounds. The company’s shares rose 1% to 277 pence as of 8.09 a.m. in London.

The London-based firm is the world’s biggest employer of voice brokers -- people who match complex trades between banks -- with 2,727 in 2018, according to its annual report.

(Updates with shares in second paragraph.)

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