(MENAFN- ProactiveInvestors - UK) Inter-dealer broker ICAP (LON:IAP) said financial markets were unlikely to return to normal any time soon as it reported a 5% fall in third quarter revenue.
The group whichmatches buyers and sellers in wholesale markets in interest rates credit commodities and other financial products said markets had stayed tough and client risk appetite was subdued between October 1 and December 31.
It said volatility remained relatively low through the quarter but picked up at the start of 2016 in the wake of the US Federal Reserve's quarter percentage-point interest rate hike in December.
ICAP chief executive Michael Spencer said: "The decision by the Fed to raise interest rates was very welcome but we are still operating in an environment of ultra-low interest rates and we have some way to go before we return to more normal market conditions.
"Risk appetite remains subdued and I see few signs this will pick up any time soon even after markets began the year with a short burst of extreme volatility."
ICAP said electronic market revenue fell 10% on a constant currency basis or 7% on a reported basis during the third quarter compared to the same period last year.
Post-trade risk and information revenue rose 8% however on a constant currency basis and on a reported basis during the third quarter compared to the same period last year
ICAP is selling its global broking business to Tullett Prebon (LON:TLPR) in return for a majority stake in the enlarged group.
Spencer said the transaction was going well. He added: "We have laid the foundations for our electronic and post trade businesses to deliver strong cash generative returns for the future.
"I remain confident and excited about the range of opportunities ahead of us and our ability to execute our strategy successfully and provide long-term profitable growth."
Shares in ICAP fell 2.6p to 440.1p. Tullet Prebon's (LON:TLPR) stock also dipped 2.6p to 322.4p.
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