Tullett Prebon posts four per cent decline in revenue

Interdeal broker Tullett Prebon may have reported a four per cent decline in revenue for the first four months of the year on Thursday, but investors certainly didn't seem too bothered.

Interdeal broker Tullett Prebon may have reported a four per cent decline in revenue for the first four months of the year on Thursday, but investors certainly didn't seem too bothered.

With the share price headly firmly higher, shareholders appeared to be paying much closer attention to the group's announcement that it has recently finalised the terms of a participation agreement under which a minimum of 12 leading banks will supply electronic streaming liquidity for Euro interest rate derivatives through tpSWAPDEAL, the company's interest rate swap platform.

The group also reported that it is "well prepared" for the implementation in the US of the rules relating to swap and security-based swap execution facilities. Tullett said it "intends to launch platforms in the US for those products which are within the scope of the rules after those rules have been published in final form".

Revenue for the four months beginning January 1st totalled £293m, down four per cent, hit by ongoing challenging market conditions.

"Market volumes also continue to be adversely affected by the more onerous regulatory environment applicable to many of our customers, and by the considerable uncertainty over the impact of new regulations covering the OTC [over-the-counter] markets, both of which reduce our customers' ability and willingness to trade," the group explained.

The day before the update, Espirito Santo Investment Bank Research release a note reaffirming its "buy" rating on the stock.

The share price was up 2.47% at 257.60p by 09:05 Thursday.

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