NEX trading statement shows mixed results
01 February 2018 London
Image: Shutterstock
NEX Group has revealed that Q3 2017 group revenue was up 3 percent year-to-year and up 6 percent year-to-date, according to the firm’s Q3 results.
The results also showed that Q3 revenue of NEX markets fell 10 percent.
NEX Optimisation Q3 revenue rose by 10 percent compared to the same period in 2016, and is up 6 percent year-to-date.
NEX explained that its second Market in Financial Instruments Directive regulatory reporting solution went live on 3 January with more than 380 new contracts, which represent an annualised revenue value of more than £10 million.
In addition, following the major overhaul of the US tax code, which includes a reduction in the federal tax rate, NEX suggested that based on preliminary interpretation of the new legislation, it expects its effective tax rate to fall to between 22 percent to 24 percent next year, down from 26 to 28 percent this year.
Group CEO Michael Spencer said: “Market volatility was low during the quarter in contrast with last year when volumes picked up in the aftermath of the US presidential election. Nevertheless we are making headway with our transformation programme as we continue to reshape NEX for tomorrow’s financial markets and reduce costs.”
“Since the beginning of January, our markets have been noticeably more active as foreign exchange volatility has increased from historic lows. However, it is still too early to assume with any confidence that the previous and prolonged period of subdued market conditions has come to an end.”
“We are meanwhile on track to deliver the expected improvement in NEX Optimisation’s operating margin in the second half of the year and these two factors give us confidence in the outlook for the current year.”
The results also showed that Q3 revenue of NEX markets fell 10 percent.
NEX Optimisation Q3 revenue rose by 10 percent compared to the same period in 2016, and is up 6 percent year-to-date.
NEX explained that its second Market in Financial Instruments Directive regulatory reporting solution went live on 3 January with more than 380 new contracts, which represent an annualised revenue value of more than £10 million.
In addition, following the major overhaul of the US tax code, which includes a reduction in the federal tax rate, NEX suggested that based on preliminary interpretation of the new legislation, it expects its effective tax rate to fall to between 22 percent to 24 percent next year, down from 26 to 28 percent this year.
Group CEO Michael Spencer said: “Market volatility was low during the quarter in contrast with last year when volumes picked up in the aftermath of the US presidential election. Nevertheless we are making headway with our transformation programme as we continue to reshape NEX for tomorrow’s financial markets and reduce costs.”
“Since the beginning of January, our markets have been noticeably more active as foreign exchange volatility has increased from historic lows. However, it is still too early to assume with any confidence that the previous and prolonged period of subdued market conditions has come to an end.”
“We are meanwhile on track to deliver the expected improvement in NEX Optimisation’s operating margin in the second half of the year and these two factors give us confidence in the outlook for the current year.”
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