FXall Posts Profit Jump Despite Slide In Volumes
March 09 2012 - 9:59AM
Dow Jones News
FX Alliance Inc. (FX), the electronic foreign-exchange platform
provider better known as FXall, reported a surge in fourth-quarter
net profit, but also saw a quarterly drop in average trading
volumes.
In its first earnings report since its stock market debut in
February, FXall said Thursday that its average daily volume in the
three months to the end of 2011 was $82.1 billion--a 23% increase
compared with a year earlier but still 7.3% down on the third
quarter.
"While our trading volumes in the fourth quarter were impacted
by weakness in the overall foreign exchange market, we still
generated solid financial results," Phil Weisberg, FXall's chairman
and chief executive, said in a statement.
Fourth-quarter net profit was $7.8 million, compared with $5.1
million a year earlier. Despite the slip in trading volumes,
FXall's revenue in the fourth quarter grew 16% on the year to $29.6
million. Over the full year, revenue increased 19% to $118.3
million.
The decline in currency trades handled by FXall in the last
three months of 2011 is in line with the trend seen at other
electronic currency brokers such as ICAP-owned EBS (IAP.LN) and
Thomson Reuters Corp. (TRI), which have also continued to report
slides in trading activity so far in 2012.
EBS said Wednesday that its daily average volumes in February
fell 9% on the year to $126.7 billion, while Thomson Reuters
reported a 5% drop to $136 billion over the same period.
A semi-annual report published last month by four major central
banks, including the Bank of England and the Federal Reserve,
showed a drop in global foreign-exchange trading volumes for the
first time since 2009.
-By Eva Szalay, Dow Jones Newswires; 44 20 7842 9305;
eva.szalay@dowjones.com
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