 reported their first trading update since the company's official launch on Wednesday.){kind=link}
Financial technology group NEX Group (LON:NXG) reported their first trading update since the company’s official launch on Wednesday, with strong figures after benefitting from Donald Trump’s election victory.
NEX Group was launched in December after the disposal of the global broking business and now includes several financial technology companies under the NEX umbrella, including NEX Optimisation and NEX Markets.
Group revenue for the third quarter to 31 December 2016 increased by 11 percent on a like-for-like constant currency basis, and 26 percent on a like-for-like, reported basis.
The NEX Markets division had a strong third quarter, helped strongly by positive movements in the wake of the US election. Revenue increased by 15 percent on a constant currency basis and 29 percent on a reported basis, with the average daily volume in US Treasuries on the BrokerTec platform increasing by 19 percent to $175 billion in the third quarter compared to the same period last year.
Michael Spencer, Group Chief Executive Officer of NEX, commented:
“After Trump’s election victory we benefited from an increase in trading activity as market participants considered the impact of potential policy changes on bond and foreign exchange markets. Both of our electronic platforms, BrokerTec and EBS, performed robustly under heightened volumes, providing our customers with non-stop access to liquidity.”
The average daily volume on EBS Direct, the platform that allows liquidity providers to stream tailored prices directly to customers, reached a new record at $22.5 billion in the third quarter, an increase of 37 percent on the same period last year.
NEX Optimisation offers cloud-hosted services across the transaction lifecycle, which help clients reduce complexity and optimise resources.
Growth in the NEX Optimisation arm of the company, which offers cloud-hosted services, was also strong, seeing a 6 percent increase in revenue underpinned by strong customer growth.
“Looking ahead, we will continue to leverage our competitive advantages, namely our networks, industry expertise and track record of delivering superior products. Our focus on medium-term growth while maintaining a strong cost discipline across the Group remains paramount,” Spencer said.
Despite the strong figures, NEX shares were trading down on Wednesday morning. NEX Group plc are currently down 2.50 percent at 560.12 (0931GMT).