8th Nov 2013 08:26
LONDON (Alliance News) - Interdealer broker Tullett Prebon PLC Friday said its revenue fell 9% in the past four months as a result of subdued market activity and uncertainty over new regulations governing derivatives trading.
Tullett Prebon, which matches buyers and sellers in the wholesale financial and energy sectors, as well as their derivative markets, said it made GBP252 million in revenue in the four months from July to October.
Revenue from January to October was GBP692 million, compared with GBP731 million reported for the corresponding period last year.
"The overall level of activity in the financial markets has remained subdued reflecting low volatility, the more onerous regulatory environment for our customers and the considerable uncertainty over the impact of new regulations covering the over-the-counter markets," the company said in a statement.
New regulations in the financial markets have been brought in to govern derivatives, such as credit default swaps, in the aftermath of the financial crisis. Authorities and regulators have been working to increase transparency in the derivatives markets so that they can spot risky transactions or trends. The new regulations mean that derivatives are centrally cleared and traded electronically, as opposed to being agreed over the phone.
Tullett Prebon said it has incurred GBP3.5 million in costs as a result of the legal action with BGC Partners, relating to what Tullett Prebon describes as a "raid" on its business in the second half of 2009.
Tullett Prebon shares have opened down 5.6% at 300.10 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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