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News
11 May 2022
Press Release
11 May 2022
In the news
11 May 2022
TP ICAP Q1 Trading Update
TP ICAP Group plc ("TP ICAP" or the "Group")
11 May 2022
Trading update for the three months ended 31 March 2022
Highlights
- Group revenue, excluding Liquidnet, up 3% in constant currency. Including Liquidnet, Group revenue up 14%; growth across all business divisions;
- Varied market conditions: Higher level of volatility and trading activity in January / first half of March; more subdued volumes in February and later in March;
- We again increased overall market share during the first quarter;
- Better revenue mix: growth across all Global Broking asset classes other than Equities (unchanged);
- Global Broking revenue per broker up 8%;
- Data & Analytics again delivered double-digit revenue growth;
- Good progress on transformation programme: TP Interest Rate Options desk now has #2 market share (from #4), benefiting from Fusion deployment.
Revenue by division
|
Three months to |
|||||
|
2022 £m |
2021 as reported £m |
2021 in constant currency £m |
Reported change |
Constant currency change |
|
|
Global Broking |
317 |
306 |
309 |
||
|
Inter-division revenues1 |
5 |
5 |
5 |
||
|
Total Global Broking |
322 |
311 |
314 |
+4% |
+3% |
|
Energy & Commodities |
106 |
100 |
101 |
||
|
Inter-division revenues1 |
1 |
1 |
1 |
||
|
Total Energy & Commodities |
107 |
101 |
102 |
+6% |
+5% |
|
Excluding Liquidnet |
27 |
27 |
27 |
0% |
0% |
|
Liquidnet2 |
62 |
8 |
8 |
+675% |
+675% |
|
Total Agency Execution |
89 |
35 |
35 |
+154% |
+154% |
|
Data & Analytics |
40 |
36 |
36 |
+11% |
+11% |
|
Post-trade Solutions |
4 |
6 |
6 |
-33% |
-33% |
|
Total Parameta Solutions |
44 |
42 |
42 |
+5% |
+5% |
|
Inter-division eliminations1 |
(6) |
(6) |
(6) |
||
|
Total Revenue |
556 |
483 |
487 |
+15% |
+14% |
|
Total Revenue (excl. Liquidnet) |
494 |
475 |
479 |
+4% |
+3% |
1. Inter-division charges have been made by Global Broking and Energy & Commodities to reflect the value of proprietary data provided to the Parameta Solutions division. The Global Broking inter-division revenues and Parameta Solutions inter-division costs are eliminated upon the consolidation of the Group's financial results.
2. In Q1 2021, £6m of revenue was included within Agency Execution relating to the post-acquisition period of Liquidnet (the acquisition completed on 23 March 2021); This Liquidnet revenue has been restated to £8m by including an additional £1m of revenue previously reported in Global Broking, and £1m previously reported in COEX Partners (in Agency Execution), reflecting the transfer of desks, which, due to their complementary nature and strategic fit, have been reclassified to be managed and reported as part of Liquidnet.
Revenue by division (constant currency basis):
- Global Broking revenue up 3%, benefitting from increased market volatility. Revenue grew in Rates, Credit, FX & Money Markets and Emerging Markets, but was flat in Equities, resulting in an improved mix.
- Rates activity increased most notably in short-dated contracts, which have lower transaction values compared with longer-dated contracts;
- Revenue per broker (productivity) improved by 8%.
- Energy & Commodities revenue up 5% driven by growth in Oil and Power & Gas in the US, while in Europe, Power & Gas declined, as high prices and significant volatility led to lower volumes.
- Agency Execution revenue of £89m increased by 154%. Liquidnet revenue of £62m was in line with market activity. Market share increased marginally in the US and was stable in Europe, where we remain a market leader.
- Parameta Solutions: Continued double-digit revenue growth in Data & Analytics (+11%).
Strategic progress:
Mark Govoni, former President of US Brokerage at Instinet, joined the Group on 2 May 2022 as the new CEO of Agency Execution, with a primary focus on driving the Liquidnet growth strategy;
- Parameta Solutions became an FCA authorised benchmark administrator in May: the first inter-dealer broker that will administer over the counter ('OTC') benchmarks;
- Digital Assets Spot Platform: Hudson River Trading added to the list of market makers; custodian network expanded to include BitGo and Komainu.
2022 AGM:
- The Group will host its Annual General Meeting today, Wednesday 11 May 2022, at 2.15pm (BST) at the offices of Allen & Overy LLP, One Bishop's Square, London, E1 6AD.
Forward looking statements
This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company's actual future results may differ materially from the results expressed or implied in these forward-looking statements.
Enquiries:
Analysts and investors
Dominic Lagan
Direct: +44 (0) 20 3933 0447
Email: dominic.lagan@tpicap.com
Media
Richard Newman
Direct: +44 (0) 7469 039 307
Email: richard.newman@tpicap.com
About TP ICAP
- TP ICAP connects buyers and sellers in global financial, energy and commodities markets.
- It is the world's leading wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world.
- We operate from more than 60 offices across 27 countries, supporting brokers with award-winning and market-leading technology.
Regulatory
11 May 2022
TP ICAP Q1 Trading Update
TP ICAP Group plc ("TP ICAP" or the "Group")
11 May 2022
Trading update for the three months ended 31 March 2022
Highlights
- Group revenue, excluding Liquidnet, up 3% in constant currency. Including Liquidnet, Group revenue up 14%; growth across all business divisions;
- Varied market conditions: Higher level of volatility and trading activity in January / first half of March; more subdued volumes in February and later in March;
- We again increased overall market share during the first quarter;
- Better revenue mix: growth across all Global Broking asset classes other than Equities (unchanged);
- Global Broking revenue per broker up 8%;
- Data & Analytics again delivered double-digit revenue growth;
- Good progress on transformation programme: TP Interest Rate Options desk now has #2 market share (from #4), benefiting from Fusion deployment.
Revenue by division
|
Three months to |
|||||
|
2022 £m |
2021 as reported £m |
2021 in constant currency £m |
Reported change |
Constant currency change |
|
|
Global Broking |
317 |
306 |
309 |
||
|
Inter-division revenues1 |
5 |
5 |
5 |
||
|
Total Global Broking |
322 |
311 |
314 |
+4% |
+3% |
|
Energy & Commodities |
106 |
100 |
101 |
||
|
Inter-division revenues1 |
1 |
1 |
1 |
||
|
Total Energy & Commodities |
107 |
101 |
102 |
+6% |
+5% |
|
Excluding Liquidnet |
27 |
27 |
27 |
0% |
0% |
|
Liquidnet2 |
62 |
8 |
8 |
+675% |
+675% |
|
Total Agency Execution |
89 |
35 |
35 |
+154% |
+154% |
|
Data & Analytics |
40 |
36 |
36 |
+11% |
+11% |
|
Post-trade Solutions |
4 |
6 |
6 |
-33% |
-33% |
|
Total Parameta Solutions |
44 |
42 |
42 |
+5% |
+5% |
|
Inter-division eliminations1 |
(6) |
(6) |
(6) |
||
|
Total Revenue |
556 |
483 |
487 |
+15% |
+14% |
|
Total Revenue (excl. Liquidnet) |
494 |
475 |
479 |
+4% |
+3% |
1. Inter-division charges have been made by Global Broking and Energy & Commodities to reflect the value of proprietary data provided to the Parameta Solutions division. The Global Broking inter-division revenues and Parameta Solutions inter-division costs are eliminated upon the consolidation of the Group's financial results.
2. In Q1 2021, £6m of revenue was included within Agency Execution relating to the post-acquisition period of Liquidnet (the acquisition completed on 23 March 2021); This Liquidnet revenue has been restated to £8m by including an additional £1m of revenue previously reported in Global Broking, and £1m previously reported in COEX Partners (in Agency Execution), reflecting the transfer of desks, which, due to their complementary nature and strategic fit, have been reclassified to be managed and reported as part of Liquidnet.
Revenue by division (constant currency basis):
- Global Broking revenue up 3%, benefitting from increased market volatility. Revenue grew in Rates, Credit, FX & Money Markets and Emerging Markets, but was flat in Equities, resulting in an improved mix.
- Rates activity increased most notably in short-dated contracts, which have lower transaction values compared with longer-dated contracts;
- Revenue per broker (productivity) improved by 8%.
- Energy & Commodities revenue up 5% driven by growth in Oil and Power & Gas in the US, while in Europe, Power & Gas declined, as high prices and significant volatility led to lower volumes.
- Agency Execution revenue of £89m increased by 154%. Liquidnet revenue of £62m was in line with market activity. Market share increased marginally in the US and was stable in Europe, where we remain a market leader.
- Parameta Solutions: Continued double-digit revenue growth in Data & Analytics (+11%).
Strategic progress:
Mark Govoni, former President of US Brokerage at Instinet, joined the Group on 2 May 2022 as the new CEO of Agency Execution, with a primary focus on driving the Liquidnet growth strategy;
- Parameta Solutions became an FCA authorised benchmark administrator in May: the first inter-dealer broker that will administer over the counter ('OTC') benchmarks;
- Digital Assets Spot Platform: Hudson River Trading added to the list of market makers; custodian network expanded to include BitGo and Komainu.
2022 AGM:
- The Group will host its Annual General Meeting today, Wednesday 11 May 2022, at 2.15pm (BST) at the offices of Allen & Overy LLP, One Bishop's Square, London, E1 6AD.
Forward looking statements
This document contains forward looking statements with respect to the financial condition, results and business of the Company. By their nature, forward looking statements involve risk and uncertainty and there may be subsequent variations to estimates. The Company's actual future results may differ materially from the results expressed or implied in these forward-looking statements.
Enquiries:
Analysts and investors
Dominic Lagan
Direct: +44 (0) 20 3933 0447
Email: dominic.lagan@tpicap.com
Media
Richard Newman
Direct: +44 (0) 7469 039 307
Email: richard.newman@tpicap.com
About TP ICAP
- TP ICAP connects buyers and sellers in global financial, energy and commodities markets.
- It is the world's leading wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world.
- We operate from more than 60 offices across 27 countries, supporting brokers with award-winning and market-leading technology.
News
21 Apr 2022
Press Release
21 Apr 2022
In the news
21 Apr 2022
TP ICAP commits to becoming Net Zero by 2026 as part of new ESG targets
TP ICAP Group, a leading electronic market infrastructure and information provider, has announced a new set of ESG targets, including a commitment to being Net Zero by 2026 across its Scope 1 (direct emissions from its own operations) and Scope 2 (indirect emissions including purchased/acquired electricity).
In addition to the Net Zero commitment, TP ICAP also commits to increasing its gender representation of the non-broking employee base from 34% to 38% by the end of 2025 and to incorporating mandatory ESG scoring into the evaluation and approval process for any new business initiative.
The ESG targets are an important part of the business’ ambition to be the broker for the transition to an inclusive and low carbon economy. Focused on areas of improvement most material to TP ICAP, these targets will be reported on annually.
The move follows a materiality assessment that established an ESG reporting framework comprising the 15 disclosure areas most relevant to the business. TP ICAP has also formed a Group ESG Forum, reporting into the Executive Committee, to oversee progress and advance the Group’s sustainability strategy.
Nicolas Breteau, Chief Executive of TP ICAP, commented, “The climate crisis and inequality are perhaps the greatest challenges of our time. Tackling these challenges requires every government, business and individual to play their part.
“Our ambition is to be the broker for the transition and these new targets mark a significant step forward in that journey. By working in partnership with our clients, colleagues, suppliers and investors, we can deploy our strengths as a business to accelerate the move to a low carbon and socially inclusive future.”
About TP ICAP Group plc
TP ICAP Group plc is a leading global markets infrastructure and data solutions provider. The Group operates a portfolio of separate and competing brands to deliver intermediary services, contextual insights and intelligence, trade execution, pre- and post-trade services, and data-led solutions. We are formed of four business divisions:
- Global Broking: the largest Interdealer Broker in the world operating under the ICAP and Tullett Prebon brands servicing clients in Rates, FX, Credit and Equities. We match buyers and sellers, facilitate price discovery, liquidity, execution and risk management.
- Energy & Commodities: the world’s leading OTC energy and commodities broker operating under the ICAP, PVM and Tullett Prebon brands. Active in all major commodities markets including oil, gas, power, renewables, ferrous metals, base metals, precious metals and soft commodities.
- Agency Execution: serving the buy side operating under the Liquidnet and COEX Partners brands. We provide trading services for a broad range of asset classes, serving a sophisticated client base of asset managers, asset owners and hedge funds.
- Parameta Solutions: formed of two businesses - Data & Analytics (D&A) and Post Trade Solutions. D&A is the world leader in providing of scarce, neutral OTC data. Consequently, it is well placed to offer unbiased data products and solutions that facilitate trading, enhance transparency, reduce risk, improve operational efficiency and a broad range of risk management solutions. Post Trade Solutions provides pure electronic services focused on resetting, compression and repo.
Media Contact
TP ICAP
Fay Rajaratnam
+44 7812811374
Maitland/AMO
+44 207 379 5151
Regulatory
21 Apr 2022
TP ICAP commits to becoming Net Zero by 2026 as part of new ESG targets
TP ICAP Group, a leading electronic market infrastructure and information provider, has announced a new set of ESG targets, including a commitment to being Net Zero by 2026 across its Scope 1 (direct emissions from its own operations) and Scope 2 (indirect emissions including purchased/acquired electricity).
In addition to the Net Zero commitment, TP ICAP also commits to increasing its gender representation of the non-broking employee base from 34% to 38% by the end of 2025 and to incorporating mandatory ESG scoring into the evaluation and approval process for any new business initiative.
The ESG targets are an important part of the business’ ambition to be the broker for the transition to an inclusive and low carbon economy. Focused on areas of improvement most material to TP ICAP, these targets will be reported on annually.
The move follows a materiality assessment that established an ESG reporting framework comprising the 15 disclosure areas most relevant to the business. TP ICAP has also formed a Group ESG Forum, reporting into the Executive Committee, to oversee progress and advance the Group’s sustainability strategy.
Nicolas Breteau, Chief Executive of TP ICAP, commented, “The climate crisis and inequality are perhaps the greatest challenges of our time. Tackling these challenges requires every government, business and individual to play their part.
“Our ambition is to be the broker for the transition and these new targets mark a significant step forward in that journey. By working in partnership with our clients, colleagues, suppliers and investors, we can deploy our strengths as a business to accelerate the move to a low carbon and socially inclusive future.”
About TP ICAP Group plc
TP ICAP Group plc is a leading global markets infrastructure and data solutions provider. The Group operates a portfolio of separate and competing brands to deliver intermediary services, contextual insights and intelligence, trade execution, pre- and post-trade services, and data-led solutions. We are formed of four business divisions:
- Global Broking: the largest Interdealer Broker in the world operating under the ICAP and Tullett Prebon brands servicing clients in Rates, FX, Credit and Equities. We match buyers and sellers, facilitate price discovery, liquidity, execution and risk management.
- Energy & Commodities: the world’s leading OTC energy and commodities broker operating under the ICAP, PVM and Tullett Prebon brands. Active in all major commodities markets including oil, gas, power, renewables, ferrous metals, base metals, precious metals and soft commodities.
- Agency Execution: serving the buy side operating under the Liquidnet and COEX Partners brands. We provide trading services for a broad range of asset classes, serving a sophisticated client base of asset managers, asset owners and hedge funds.
- Parameta Solutions: formed of two businesses - Data & Analytics (D&A) and Post Trade Solutions. D&A is the world leader in providing of scarce, neutral OTC data. Consequently, it is well placed to offer unbiased data products and solutions that facilitate trading, enhance transparency, reduce risk, improve operational efficiency and a broad range of risk management solutions. Post Trade Solutions provides pure electronic services focused on resetting, compression and repo.
Media Contact
TP ICAP
Fay Rajaratnam
+44 7812811374
Maitland/AMO
+44 207 379 5151
Press Release
06 Apr 2022
In the news
06 Apr 2022
TP ICAP connects dealers to Liquidnet’s New Issue Trading protocol
TP ICAP, a leading electronic market infrastructure and information provider, announced today that it has enhanced Liquidnet’s New Issue Trading (NIT) protocol for bonds to enable dealers to join the buy-side in placing orders and trade directly on its new issue order book.
Liquidnet launched the NIT protocol – the first electronic solution to trade new issues in Europe – to its network of over 500 global firms in September 2021. Expanding access to the protocol will now enable more than 100 of TP ICAP’s major dealer clients to also connect, enabling the buy-side and the sell-side to trade together for the first time from a TP ICAP screen. Dealer access to the new issue screen is via Fusion – TP ICAP’s award-winning electronic portal through which its clients can access the Group’s aggregated liquidity and post-trade services.
Nicolas Breteau, CEO of TP ICAP, said: “Making it possible for TP ICAP’s dealer clients to connect to the innovative NIT protocol means a deeper liquidity pool and more efficient trading experience for all – buy-side and sell-side. It’s another compelling example of what the combined strengths of TP ICAP and Liquidnet bring to market, and that we are on track in executing our growth plans.”
Mark Russell, Global Head of Fixed Income for Liquidnet, said: “The electronification of new issue trading is one facet of Liquidnet’s overall Primary Markets initiative. We were the first to introduce a new issue trading protocol in EMEA, and today’s announcement helps to industrialise that innovation by taking it to a new audience. The outcome is improved liquidity, more efficient new issue trading, while still maintaining anonymity.”
The announcement builds on TP ICAP’s acquisition of Liquidnet in March 2021. It follows the phase one launch of Liquidnet Primary Markets in September 2021, providing investors with new deal information in real-time, to setup in their O/EMS for faster processing, and facilitating bond trading in the grey market and immediately post-pricing.
About TP ICAP Group plc
TP ICAP Group plc is a leading global markets infrastructure and data solutions provider. The Group operates a portfolio of separate and competing brands to deliver intermediary services, contextual insights and intelligence, trade execution, pre- and post-trade services, and data-led solutions. We are formed of four business divisions:
- Global Broking: the largest Interdealer Broker in the world operating under the ICAP and Tullett Prebon brands servicing clients in Rates, FX, Credit and Equities. We match buyers and sellers, facilitate price discovery, liquidity, execution and risk management.
- Energy & Commodities: the world’s leading OTC energy and commodities broker operating under the ICAP, PVM and Tullett Prebon brands. Active in all major commodities markets including oil, gas, power, renewables, ferrous metals, base metals, precious metals and soft commodities.
- Agency Execution: serving the buy side operating under the Liquidnet and COEX Partners brands. We provide trading services for a broad range of asset classes, serving a sophisticated client base of asset managers, asset owners and hedge funds.
- Parameta Solutions: formed of two businesses - Data & Analytics (D&A) and Post Trade Solutions. D&A is the world leader in providing of scarce, neutral OTC data. Consequently, it is well placed to offer unbiased data products and solutions that facilitate trading, enhance transparency, reduce risk, improve operational efficiency and a broad range of risk management solutions. Post Trade Solutions provides pure electronic services focused on resetting, compression and repo.
About Liquidnet
Liquidnet is a leading electronic trading network that intelligently connects the world’s investors to the world’s investments. Since our founding in 1999, our network has grown to include more than 1,000 institutional investors that collectively manage $33 trillion in equity and fixed income assets. Our network spans 46 markets across six continents and seamlessly connects institutional brokers, investment banks, exchanges, alternative trading venues, and a growing list of data and research providers. We built Liquidnet to make global capital markets more efficient, and continue to do so by adding additional participants, enabling trusted access to trading and investment opportunities, and delivering the actionable intelligence and insight that our customers need. Liquidnet Holdings, Inc. and its subsidiaries are part of TP ICAP Group plc. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.
Media Contact
TP ICAP
Fay Rajaratnam
+44 7812811374
Maitland/AMO
+44 207 379 5151
Regulatory
06 Apr 2022
TP ICAP connects dealers to Liquidnet’s New Issue Trading protocol
TP ICAP, a leading electronic market infrastructure and information provider, announced today that it has enhanced Liquidnet’s New Issue Trading (NIT) protocol for bonds to enable dealers to join the buy-side in placing orders and trade directly on its new issue order book.
Liquidnet launched the NIT protocol – the first electronic solution to trade new issues in Europe – to its network of over 500 global firms in September 2021. Expanding access to the protocol will now enable more than 100 of TP ICAP’s major dealer clients to also connect, enabling the buy-side and the sell-side to trade together for the first time from a TP ICAP screen. Dealer access to the new issue screen is via Fusion – TP ICAP’s award-winning electronic portal through which its clients can access the Group’s aggregated liquidity and post-trade services.
Nicolas Breteau, CEO of TP ICAP, said: “Making it possible for TP ICAP’s dealer clients to connect to the innovative NIT protocol means a deeper liquidity pool and more efficient trading experience for all – buy-side and sell-side. It’s another compelling example of what the combined strengths of TP ICAP and Liquidnet bring to market, and that we are on track in executing our growth plans.”
Mark Russell, Global Head of Fixed Income for Liquidnet, said: “The electronification of new issue trading is one facet of Liquidnet’s overall Primary Markets initiative. We were the first to introduce a new issue trading protocol in EMEA, and today’s announcement helps to industrialise that innovation by taking it to a new audience. The outcome is improved liquidity, more efficient new issue trading, while still maintaining anonymity.”
The announcement builds on TP ICAP’s acquisition of Liquidnet in March 2021. It follows the phase one launch of Liquidnet Primary Markets in September 2021, providing investors with new deal information in real-time, to setup in their O/EMS for faster processing, and facilitating bond trading in the grey market and immediately post-pricing.
About TP ICAP Group plc
TP ICAP Group plc is a leading global markets infrastructure and data solutions provider. The Group operates a portfolio of separate and competing brands to deliver intermediary services, contextual insights and intelligence, trade execution, pre- and post-trade services, and data-led solutions. We are formed of four business divisions:
- Global Broking: the largest Interdealer Broker in the world operating under the ICAP and Tullett Prebon brands servicing clients in Rates, FX, Credit and Equities. We match buyers and sellers, facilitate price discovery, liquidity, execution and risk management.
- Energy & Commodities: the world’s leading OTC energy and commodities broker operating under the ICAP, PVM and Tullett Prebon brands. Active in all major commodities markets including oil, gas, power, renewables, ferrous metals, base metals, precious metals and soft commodities.
- Agency Execution: serving the buy side operating under the Liquidnet and COEX Partners brands. We provide trading services for a broad range of asset classes, serving a sophisticated client base of asset managers, asset owners and hedge funds.
- Parameta Solutions: formed of two businesses - Data & Analytics (D&A) and Post Trade Solutions. D&A is the world leader in providing of scarce, neutral OTC data. Consequently, it is well placed to offer unbiased data products and solutions that facilitate trading, enhance transparency, reduce risk, improve operational efficiency and a broad range of risk management solutions. Post Trade Solutions provides pure electronic services focused on resetting, compression and repo.
About Liquidnet
Liquidnet is a leading electronic trading network that intelligently connects the world’s investors to the world’s investments. Since our founding in 1999, our network has grown to include more than 1,000 institutional investors that collectively manage $33 trillion in equity and fixed income assets. Our network spans 46 markets across six continents and seamlessly connects institutional brokers, investment banks, exchanges, alternative trading venues, and a growing list of data and research providers. We built Liquidnet to make global capital markets more efficient, and continue to do so by adding additional participants, enabling trusted access to trading and investment opportunities, and delivering the actionable intelligence and insight that our customers need. Liquidnet Holdings, Inc. and its subsidiaries are part of TP ICAP Group plc. For more information, visit www.liquidnet.com and follow us on Twitter @Liquidnet.
Media Contact
TP ICAP
Fay Rajaratnam
+44 7812811374
Maitland/AMO
+44 207 379 5151
In The News
Get in touch
Richard Newman
Group Head of Marketing & Communications
