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ICAP posts YOY rise in fiscal Q1 group revenue

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ICAP posts YOY rise in fiscal Q1 group revenue

ICAPPlc posted a 2% year-over-year increase in group revenue fromcontinuing operations on a constant-currency basis and of 7% on a reportedbasis for the quarter ended June 30.

The figures exclude the effect of the discontinuedbusinesses that are being sold as part of the proposed of its global hybrid voice/brokingand information business to TullettPrebon Plc, the consolidation of ENSO and the residual revenue fromexisting shipping contracts.

The company noted that trading activity spiked following theU.K.'s EU referendum, which led it to transact more than $200 billion offoreign exchange volume on its EBS platform on June 24. Group CEO MichaelSpencer said ICAP remains "cautiously confident" despite increaseduncertainty in the macroeconomic outlook for the U.K. and the global economy inthe aftermath of the vote.

Revenue in ICAP's electronic markets business declined 2%year over year on a constant-currency basis and increased 3% on a reportedbasis in the company's fiscal first quarter. Average daily volume on theBrokerTec platform fell in U.S. Treasuries by 17% to $142 billion, in U.S. repoby 7% to $202 billion and in European repo by 2% to €175 billion; average dailyvolume on the EBS platform decreased 15% on a yearly basis to $83 billion asvolatility remained low.

In the company's post-trade risk and information business,revenue increased year over year by 6% on a constant-currency basis and 12% ona reported basis, with ICAP noting that thecontinuing demand for risk mitigation products was a key driver of growth in the period.

Revenue in ICAP's global broking business was flat on aconstant-currency basis and increased by 2% on a reported basis compared to theyear-ago period.

ICAP added that its deal with Tullett Prebon is to complete later in2016. Following completion, ICAP will trade as NEX Group Plc.