9th Feb 2016 07:25
LONDON (Alliance News) - ICAP PLC on Tuesday said the deal to sell its voice broking and information business to rival Tullett Prebon PLC in on track.
Both companies are in the process of obtaining regulatory and competition approval from various authorities.
"The transaction to combine our global hybrid voice broking business with Tullett Prebon is proceeding well, and marks a defining moment in the transformation of the group into a financial technology business. We have laid the foundations for our electronic and post trade businesses to deliver strong, cash generative returns for the future," Chief Executive Michael Spencer said.
The markets operator, which has exposure to interdealer broking business and provides post trade risk mitigation and information services, said revenue from continuing businesses for its third quarter ended December 31 was 5% lower than the corresponding period the prior year.
ICAP said market conditions have been tough, with low appetite for risk amid continuing deleveraging among its investment banking clients.
Spencer welcomed the US Federal Reserve's rate hike in December, though he noted that there is "some way to go" before a return to normal market conditions.
"Risk appetite remains subdued, and I see few signs that this will pick up any time soon, even after markets began the year with a short burst of extreme volatility," Spencer said.
"Against the backdrop of a difficult market, our business continues to perform well, particularly the post trade division which goes from strength to strength.
The post trade risk and information division's third-quarter revenue rose by 8%, the company said, driven by demand for the compression and reconciliation services of its TriOptima unit.
Results for the year ending March 31 will be reported on May 16.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
IAP.LTLPR.L