TP ICAP Sees Sharp Decline in Q3 Global Broking Revenue

TP ICAP PLC (LON: TCAP), an interdealer broker, has published its Group financial results for the third quarter of 2020, showing a significant decline in its revenues coming from its global brokerage unit and its overall business.

The total quarterly revenue for the period ending on September 30, came in at £388 million. That was a year-on-year decline of 6 percent at a constant currency rate and 19 percent after Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rate translations.

The Group’s global broking business remained the worst hit with a 19 percent decline in total revenue to £260 million, compared to last year’s £320 million. The energy and commodities unit of the company went down by 15 percent, while the institutional services slumped by 16 percent.

On the other hand, demand for TP ICAP’s data and Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term services increased by 9 percent with quarterly revenue of £36 million.

Considering the nine month’s numbers, TP ICAP’s revenue declined marginally by 1 percent to £1,378. Its global broking business was the only unit with a decline in revenue for that period with a 5 percent decrease on a constant currency basis.

The demand for institutional services jumped the most with a 28 percent yearly increase in a nine month period, while energy and commodities, and data and analytics units gained 5 percent and 8 percent respectively.

“Over a nine-month period of substantial economic dislocation, TP ICAP's business has been resilient. We have implemented a targeted cost efficiency program that will provide further support to our earnings power in an operating environment that remains uncertain,” TP ICAP CEO, Nicolas Breteau said.

Expecting to See Good Numbers in Q4

In its full-year guidance, the Group projected a positive outcome. It has already seen an increase in the broking business during October and also made significant investments in the sales capabilities of its data and analytics business.

Meanwhile, the Group is in the process of acquiring Liquidnet Holdings and its subsidiaries and has agreed to pay up to $700 million.

“I am excited by the prospects for each of our businesses, and for the additional opportunities that Liquidnet will bring. Our franchises are strong, and our clients value our critical role in the global financial market structure,” Breteau added.