Interdealer broker Icap saw its share price dip this morning after revealing a five per cent slump in third-quarter revenue.
The company, which is plowing ahead with the sale of its voice broking business to rival Tullet Prebon, blamed “challenging” market conditions and said “risk appetite remains subdued amongst our clients as they continue to deleverage their balance sheets.”
Shares were 1.3 per cent lower at 437p in mid-morning trading.
The FTSE 250 firm saw a 10 per cent drop in electronic market revenues over the period as trading volumes fell by an eye-watering 35 per cent to $78bn.
“FX volatility did not have the same central bank interventions from the ECB and Bank of Japan witnessed in the same period last year,” said the company.
Icap also saw a seven per cent decline in global broking, but revenues from its post trade services increased by eight per cent.
The company said its deal with Tullet Prebon “is proceeding as expected and it is anticipated it will take place during 2016”, subject to regulatory approval.
“Against the backdrop of a difficult market, our business continues to perform well, particularly the post trade division which goes from strength to strength,” said chief executive Michael Spencer.
“The decision by the Fed to raise interest rates was very welcome, but we are still operating in an environment of ultra-low interest rates and we have some way to go before we return to more 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.”
Full story: Icap shares fall on revenue dip: City A.M.