Tullet Prebon sees revenues slow in October

Tullett Prebon, the interdealer broker, says revenue in the four months from July to October was 8% higher than reported for the same period of 2010. When currency effects and other adjustments are made revenues were up 9%.

For the year so far, Tullet says its £769m income is 2% higher than 2010 on an adjusted basis.

Interdealer brokers tend to profit when there is significant market volatility as they take a fee on every transaction they negotiate. Tullett says August was particularly busy but warns market activity slowed towards the end of the period, with October 3% down on the prior year and that trend has continued into November.

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Tullett Prebon is also involved in a legal dispute with its rival broker BGC over data useage. So far this year the battle has cost the firm £4.7m although the outcome of an arbitration process is expected before the preliminary full year results for 2011.

Today's update says Tullett's financial position "remains strong".

Shares in Tullett were down 0.9% in morning trading at 308.3p

BS