Icap in a tumble despite big leap in bond trading on Fed's move
Thursday 11 July 2013
A huge surge in bond trading after the United States Federal Reserve shook markets with plans to slow its money-printing programme failed to save broking giant Icap from a City sell-off yesterday.
Shares in the interdealer broker tumbled 15.1p, or 4 per cent, to 384.9p, wiping nearly £100m off the value of the company founded by Michael Spencer. Mr Spencer, who is chief executive and owns nearly 17 per cent of the business, took a £16m paper hit.
Comments by the Fed chairman, Ben Bernanke, that the US could slow its quantitative easing programme sparked a huge sell-off of US Treasury bonds, sending average daily volumes on Icap's BrokerTec online bond trading platform soaring 51 per cent over the quarter. But revenues failed to match the surge as clients trade more cheaply for dealing in bigger volumes.
Icap also suffered elsewhere as investment banks cut back on commodities trading. Overall revenues for the quarter were 2 per cent ahead of a year earlier after the "mixed performance", with expectations for the full year staying unchanged, a disappointment for many City analysts who had been primed for upgrades. Nese Guner, at Citigroup, said: "We had thought Q1's growth had a reasonable chance of exceeding our annual forecast."
Mr Spencer said Icap had seen "welcome increase in volatility in some asset classes, which has generated additional trading volumes". But he warned: "It remains far too early to say that we are seeing a sustained upturn." The firm also faces new regulatory demands in the US from October.
Icap is the biggest of the brokers, closely followed by Terry Smith's Tullett Prebon. The Swiss firm Tradition, New York and London-based BGC and GFI are also major players.
The Sistine Chapel is set to be illuminated with thousands of LEDs
Gillian Anderson lays into gender disparity in Hollywood
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...