ICAP Has Biggest Two-Day Surge in a Year on Currency TradingGavin Finch
ICAP Plc had its biggest two-day rally in more than a year after the U.K.-based inter-dealer broker said currency-trading volume on its EBS electronic platform rose 22 percent in January from a year earlier.
The average daily foreign-exchange volume was $141.3 billion last month, up from $116 billion in the same month of 2012, ICAP said yesterday in a statement on its website. Average daily fixed-income volume rose 16 percent to $626.7 billion. The London-based company is scheduled to report its third-quarter earnings tomorrow.
The stock rose 7.4 percent to 363.8 pence at 10:10 a.m. in London trading, the highest since June 2012. The shares have risen 14 percent in the past two days, the most since Feb. 1-2, 2012.
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 last month that it’s being investigated by the U.K.’s Financial Services Authority as part of its probe into Libor rigging.