Interim Management Statement

Released : 18.11.2011 07:00

18 November 2011

Tullett Prebon plc

Interim Management Statement

Tullett Prebon plc (the "Company") is today issuing its Interim Management
Statement in relation to the period from 1 July 2011.

Business Update

The world's financial markets have remained unsettled, and since the half year
there have been periods of market volatility and heightened activity,
particularly in the first two weeks of August, although there have also been
periods of more subdued activity.

Revenue in the four months July to October of £315m was 8% higher than reported
for the same period last year. Using constant exchange rates, and adjusting for
the impact of the closure in 2010 of the satellite offices in North America and
for the recent acquisition of Conven�o, revenue was 9% higher. Market activity
slowed towards the end of the period, and revenue in the month of October was
3% lower than in October 2010. The trend seen in October has continued into

Year to date (January to October) revenue of £769m is unchanged from that
reported for the same period last year. Using constant exchange rates, and
adjusting for the impact of the closure of the satellite offices and the
acquisition of Conven�o, revenue was 2% higher.

The acquisition of Conven�o completed on 9 August 2011. The business is
focused on providing a traditional inter-dealer broking service to clients from
a single location in Sao Paolo, Brazil, and has performed in line with our
expectations since the completion of the acquisition.

The Company has reached agreement to acquire Chapdelaine & Co., a leading
municipal bonds broker based in New York, for a consideration of $10.2m to be
settled in cash on completion. The sellers of the business are Chapdelaine
Municipal Brokers Inc. and Chapdelaine & Co. Municipal Securities Inc. The
acquisition is expected to complete before the end of the year.

Since 30 June, £5.5m of costs have been incurred in relation to the ongoing
major legal actions between the Company and BGC. Year to date, the net charge
from the costs and income relating to these major legal actions is £4.7m (H1
2011: net credit £0.8m, Full Year 2010: net charge £7.7m). We expect to know
the outcome of the arbitration on the claim by BGC Market Data alleging that
the Company misappropriated data supplied to its information sales subsidiary,
before the announcement of the preliminary results for 2011.

On 20 October the European Commission (EC) tabled proposals aimed at making
financial markets in Europe more efficient, resilient and transparent. These
proposals, which consist of a regulation (MiFIR) and a directive (MiFID II),
are broadly consistent with the proposals issued in September last year, and
contain provisions, amongst others, on mandatory clearing requirements, trade
reporting, and permissible trade execution venues for financial instruments
including derivatives. The proposals now pass to the European Parliament and
the Council for negotiation and adoption. The detailed technical rules will be
finalised by the European Securities and Markets Authority, and it is envisaged
that MiFIR and MiFID II will come into force during 2014.

In the United States, we now expect the final detailed rules and regulations to
apply the principles of the Dodd-Frank Wall Street Reform and Consumer
Protection Act to be issued at the end of the first quarter next year, with
implementation likely to be phased in starting in the second half of next year.

As we have previously commented, we agree with the objectives and support the
direction of these proposed reforms. We believe their introduction will be
positive for our business as the proposals formalise the role of the
intermediary in the OTC markets.

We have continued to develop our electronic broking capabilities and we are
developing platforms to provide clients with the flexibility to transact either
entirely electronically or via the business' comprehensive voice execution
broker network, within both the current trading landscape and under all
currently anticipated regional regulatory environments.

In September, we announced the early support from clients for the forthcoming
launch of tpSWAPDEAL, our hybrid interest rate swap trading platform, which in
addition to standard electronic platform functionality, has a number of
features designed to replicate and enhance the advantages of the current voice
market. We are now in the process of connecting clients to the platform.

The Company's financial position remains strong.


Nigel Szembel, Head of Communications, Tullett Prebon plc

Direct: +44 (0)20 7200 7722