ICAP Plc, the biggest broker of transactions between banks, said it expects revenue in the six months ending Sept. 30 will be “marginally ahead’ of the year-earlier period amid market volatility.
Full-year earnings are likely to be “broadly in line” with its view in July, the London-based company said today in a statement. Analyst estimates for pretax profit at the time ranged from 366 million pounds ($572 million) to 402 million pounds.
“Due to continuing political and economic uncertainty, we expect the recent high levels of volatility in financial markets to continue for the rest of the year,” said Chief Executive Officer Michael Spencer in the statement. “The diversity of our products and services will continue to assist our customers around the world to do business and reduce risk.”
Interdealer brokers such as ICAP act as a go-between for banks that trade bonds, stocks, currencies, energy and derivatives. They profit when prices fluctuate because more traders use the products they trade.
ICAP said it has seen higher volumes on its pure electronic platforms, including $407 billion traded on is EBS foreign exchange operation on Aug. 4.