A drop in trading volumes due to ongoing economic fears has hit profits at the interdealer broker ICAP.
The firm, which matches up buyers and sellers in the wholesale markets, said there had been a slight improvement in business in the first three months of 2012.
However, this had tailed off with activity in April and early May slow due to the ongoing euro crisis and regulatory uncertainty depressing trading volumes.
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"Some resolution on these important issues would give a big and welcome lift to market sentiment," said Chief Executive Michael Spencer.
Pre-tax profits at the firm fell 16% to £217m in the year to the end of March, with revenues down 3% to £1.68bn.
Basic earnings per share fell 26% to 21.1p, but the company tried to keep investors onside with 10% dividend hike to 22p.
Revenues fell in each of its markets except foreign exchange, where it was up 2%.
Credit markets, comprising corporate bonds and credit derivatives, were hit particularly hard with revenues down 15%.
The firm said this was due to global credit concerns and a reduction in risk appetite, which impacted new corporate bond issuance.
Trade in its biggest market, rates, which includes interest rate derivatives and government bonds, was down 3%.
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