Liquidnet Credit, part of interdealer broker, data and services provider TP ICAP, saw revenues grew to £11 million in 2023 according to a spokesperson for the firm, a more than 20% YoY increase from 2022’s £9 million figure.
TP ICAP Group has consolidated its credit activities, with Liquidnet Credit now managed by the Global Broking division, which covers primary and secondary market trading protocols. In its 2023 results, TP ICAP states that this merger allows it to leverage its sell-side relationships and improve connectivity and efficiency through a shared support infrastructure.
Speaking with analysts on the TP ICAP 2023 earnings call, Daniel Fields CEO of Global Broking, said, “We see a big opportunity in credit, there’s increased electronification in the market. Structurally, the credit market remains with dealers as an integral part of most of the transactions. And therefore, we believe that the constant connectivity between global broker-dealers will allow us to accelerate connectivity throughout the various protocols.”
In TP ICAP’s 2023 results, Liquidnet Credit is excluded from Global Broking when compared to the firm’s 2023 Capital Markets Day targets in order to provide a like-for-like YoY comparison.
In Q4 2023, Liquidnet’s cash equities grew 13% and the rest of the division’s revenue rose by 10%. However, over the year Liquidnet division revenue declined by 1% in 2023, with cash equities revenue down 9% and global commission reaching a nine-year low.
In its financial and preliminary management report for 2023, TP ICAP stated: “Trading in the first two months of the year has been good. We remain comfortable with current market expectations for full year 2024.”
Separately, TP ICAP’s data division, Parameta, was reported to have been placed in a holding company. Analysts quizzed TP ICAP Group’s CEO, Nicolas Breteau, about plans for the future including a potential IPO.
“Regarding Parameta, we are exploring several options because we think that a different configuration could help Parameta to source other data providers, could also help grow the business, maybe on a non-organic manner going forward,” he said. “So we need to complete our work before we could decide on what will be the preferred route.”
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