The UK entity of XTX has published its annual financials for fiscal 2021, reporting revenue of £1.477 billion, up from the previous year's £1.065 billion. Its profits also jumped 42 percent to £667 million.
These figures are only for the XTX Markets Technologies Limited, which is the primary UK business entity of the XTX group. It is the parent of XTX Markets Ltd and XTX Markets Trading Ltd, two primary revenue generators in the country.
XTX Markets Limited, under which the group is offering counterparties trading, reported a more than 18 percent drop in its revenue, whereas its profits sank by almost 81 percent. In absolute terms, its revenue came in at £531,558, which is down from the previous year’s £651,865. It is to be noted that the trading company witnessed a 92 percent revenue growth in 2020. So, despite the latest fall, its revenue stands above other operational years.
The entity cited the impact of Brexit behind the drop in its net revenue.
“Net revenues fell… due to the cessation with effect from 1 January 2021 of trading in EU equities markets as a result of the UK’s withdrawal from the EU and in 2021 having ceased to provide services to the affiliates ,” the Companies House filing of XTX Markets Limited stated.
Changes in Business Structure
XTX is known for providing spot FX liquidity. The group took steps in 2021 to distinguish its trading on exchange operations from its direct to counterparty trading activities. In addition, the FCA-regulated XTX Market Limited is quoting directly to the counterparties under a new model implemented by the group, while trading on exchanges is being offered by a separate entity.
