It’s long been claimed by some that companies such as Icap and Tullett Prebon are more attractive from an investment perspective than the old-fashioned exchanges, mainly on the basis that they offer a far more diversified product line. Several exchanges have woken up to this over the past few years and have effectively sought to replicate the business model utilised by the brokers, who have always claimed that they benefit whether markets are rising or falling.
Michael Spencer, Icap’s chief executive, reiterated this in a trading statement covering the year to March 31. “Our business continues to make significant progress despite these more challenging conditions; for the first time our revenues have exceeded £1.5 billion during the year,” he said.
Spencer added: “While the fiscal easing and capital rebuilding by the banks will in due course restore confidence in the financial markets we are still in a period of turbulence as banks and other financial institutions restructure to address asset disposals, cost reduction and the reallocation of leverage. The last quarter of our financial year saw activity in the wholesale financial markets slower overall than the same, exceptionally busy, period in the previous financial year.