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TCAP - TP ICAP News Story

345p 4.4  1.3%

Last Trade - 4:42pm

Sector
Financials
Size
Mid Cap
Market Cap £1.92bn
Enterprise Value £2.03bn
Revenue £1.78bn
Position in Universe 293rd / 1826

UPDATE 1-Interdealer broker TP ICAP picks Paris for EU hub, profit drops

Tue 7th August, 2018 7:53am
(Adds details on quarter, iSwap EU hub)
    Aug 7 (Reuters) - TP ICAP Plc  TCAPI.L , the world's largest
interdealer broker, said on Tuesday it chose Paris to be its
European Union headquarters after Britain leaves the bloc, and
reported a steep drop in first-half pre-tax profit due to lower
volatility in financial markets.
    The company's pre-tax profit fell 52 percent. Brokers have
been hurt as investors rein in risk-taking after stock markets
racked up a decade of gains. The costs of Brexit and the
European Union's new rules on market transparency have also
weighed on the sector.
    TP ICAP said underlying revenue fell 2 percent to 910
million pounds for the period.
    Global Broking revenue rose 5 percent to 672 million pounds
at constant exchange rates, TP ICAP said, adding that conditions
within its energy and commodities division remained challenging.
    The company, which brings together buyers and sellers in
financial, energy and commodities markets, said pre-tax profit
fell to 34 million pounds ($44.03 million) in the six months
ended June, from 71 million pounds a year earlier.  urn:newsml:reuters.com:*:nRSG9895Wa
   The company also said iSwap, an electronic trading platform
for over-the-counter interest rate derivatives, was expected to
choose Amsterdam for its EU hub. TP ICAP is a major shareholder
in iSwap.
    TP ICAP fired its chief executive officer last month and
warned rising costs related to Britain's EU exit and new market
regulations would see profit fall short of expectations this
year.  urn:newsml:reuters.com:*:nL4N1U62O6

 ($1 = 0.7723 pounds)

 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by
Bernard Orr)
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810;
Outside UK +91 80 6749 2764; Reuters Messaging:
noor.hussain.thomsonreuters.com@reuters.net))
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