NEX Group posts 11% rise in third-quarter revenue

FTSE 250 financial broker NEX Group – formerly ICAP – posted a rise in revenue for the third quarter as Donald Trump’s US presidential win lifted trading activity, although the company warned it was still too early to assume that a period of subdued market conditions had come to an end.

In the quarter to the end of December, revenue was up 11% on a like-for-like constant currency basis, and 26% higher on a LFL reported basis.

Chief executive officer Michael Spender said: "30 December 2016 was a momentous and exciting day as we completed the disposal of our global broking business and officially launched NEX Group.

“After Trump's election victory we benefited from an increase in trading activity as market participants considered the impact of potential policy changes on bond and foreign exchange markets. Both of our electronic platforms, BrokerTec and EBS, performed robustly under heightened volumes, providing our customers with non-stop access to liquidity. However it is still too early to assume with any confidence that the previous and prolonged period of subdued market conditions has come to a permanent end; indeed volumes in January were generally more muted.”

In NEX Markets, third-quarter revenue was up 15%, and 4% year-to-date, as the US election generated increased volatility in both fixed income and FX markets.

In NEX Optimisation, revenue was up 6% in the quarter and 4% year-to-date, underpinned by customer growth, innovation and a change to direct billing at NEX Data.