TP ICAP Sees 14% Jump in Q3 Revenue, Liquidnet Posts 22% Decline


London-listed TP ICAP (LON: TCAP), which connects buyers and sellers in global financial markets, reported a 14% jump in its quarterly results on Tuesday, benefiting from the current foreign exchange (FX) and stock market volatility.

For the three months ended September 30 (third quarter of 2022), the world’s largest inter-dealer broker posted revenue of £508 million, compared to £447 million reported in the same period last year.

According to the press release, the Group benefited from favorable conditions in the Global Brokering and Rates segment, which is the most profitable asset class for the brokerage. The Group’s performance could have been even better if not for the USD appreciation. Approximately 60% of the Group’s revenues are denominated in the US currency. The USD was up more than 7% in the third quarter compared to a weighted currency basket.

“Global Broking revenue was up 12% (+20%). All asset classes generated high single-digit to double-digit growth, reflecting the continued strong performance. E&C revenue declined by 12% (-3%). In Agency Execution , including Liquidnet, revenue declined by 1% (+6%),” TP ICAP commented in the trading update.

However, revenues at Liquidnet, which was acquired at the end of March 2021, fell 22% in the third quarter. US Agency Alternative Trading System (ATS) volumes, which play a significant role in Liquidnet’s performance, proved weak compared to OTC venues and exchanges.

Year-to-date Revenues are Also Higher

Revenues for the first nine months of 2022 increased by 10% compared to the same period in 2021, reaching £1,588m Excluding Liquidnet, Group revenues increased by 7%.

However, the European gas and energy markets proved to be a challenge, where significant price increases and capital requirements led to a decline in liquidity and lower activity. As a result, Energy & Commodities revenue fell by 3%.

The Group, as a whole, continues to trade in line with the Board’s expectations.

London-listed TP ICAP (LON: TCAP), which connects buyers and sellers in global financial markets, reported a 14% jump in its quarterly results on Tuesday, benefiting from the current foreign exchange (FX) and stock market volatility.

For the three months ended September 30 (third quarter of 2022), the world’s largest inter-dealer broker posted revenue of £508 million, compared to £447 million reported in the same period last year.

According to the press release, the Group benefited from favorable conditions in the Global Brokering and Rates segment, which is the most profitable asset class for the brokerage. The Group’s performance could have been even better if not for the USD appreciation. Approximately 60% of the Group’s revenues are denominated in the US currency. The USD was up more than 7% in the third quarter compared to a weighted currency basket.

“Global Broking revenue was up 12% (+20%). All asset classes generated high single-digit to double-digit growth, reflecting the continued strong performance. E&C revenue declined by 12% (-3%). In Agency Execution , including Liquidnet, revenue declined by 1% (+6%),” TP ICAP commented in the trading update.

However, revenues at Liquidnet, which was acquired at the end of March 2021, fell 22% in the third quarter. US Agency Alternative Trading System (ATS) volumes, which play a significant role in Liquidnet’s performance, proved weak compared to OTC venues and exchanges.

Year-to-date Revenues are Also Higher

Revenues for the first nine months of 2022 increased by 10% compared to the same period in 2021, reaching £1,588m Excluding Liquidnet, Group revenues increased by 7%.

However, the European gas and energy markets proved to be a challenge, where significant price increases and capital requirements led to a decline in liquidity and lower activity. As a result, Energy & Commodities revenue fell by 3%.

The Group, as a whole, continues to trade in line with the Board’s expectations.



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