Despite some hefty peaks and troughs in financial markets over the past four months, interdealer broker Tullett Prebon saw its revenues drop by 9% as traders sat on their hands worrying about the threat of quantitative easing coming to halt.
Tullett, run by Terry Smith, said overall activity in financial markets had been subdued and added: “measures of market volatility have not increased and there have been only isolated periods of higher levels of market activity, which have not been sustained.”
Like its rival Icap, Tullett thrives in volatile markets, whichever way they are moving, and suffers in quiet ones.
Tullett shares dropped almost 6%, falling 18p to 300p, while Icap lost 5.65p to 372.65p.
Revenues in the four months to October dived to £252 million, taking revenues for the year to date down by 5% to £692 million.
Tullett said its customers had also been hit by the growing burden of regulation and uncertainty over how new rules for over-the-counter markets would operate.
Since the end of June Tullett has spent another £3.5 million in its legal action against rival BGC, which poached staff from it in 2009.
The total legal bill is now £13.8 million. One case should end next January with another not scheduled to start until the second quarter of 2014.
Tullett has opened offices in Mexico and South Africa.
