(Reuters) – TP ICAP Plc <TCAPI.L>, the world’s largest interdealer broker, said on Tuesday it chose Paris to be its European Union headquarters after Britain leaves the bloc, and reported a steep drop in first-half pre-tax profit due to lower volatility in financial markets.
The company’s pre-tax profit fell 52 percent. Brokers have been hurt as investors rein in risk-taking after stock markets racked up a decade of gains. The costs of Brexit and the European Union’s new rules on market transparency have also weighed on the sector.
TP ICAP said underlying revenue fell 2 percent to 910 million pounds for the period.
Global Broking revenue rose 5 percent to 672 million pounds at constant exchange rates, TP ICAP said, adding that conditions within its energy and commodities division remained challenging.
The company, which brings together buyers and sellers in financial, energy and commodities markets, said pre-tax profit fell to 34 million pounds in the six months ended June, from 71 million pounds a year earlier.
The company also said iSwap, an electronic trading platform for over-the-counter interest rate derivatives, was expected to choose Amsterdam for its EU hub. TP ICAP is a major shareholder in iSwap.
TP ICAP fired its chief executive officer last month and warned rising costs related to Britain’s EU exit and new market regulations would see profit fall short of expectations this year.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Bernard Orr)