ITG® Says European Revenues Up 27% In H108
Creditable Performance in Tough Market Conditions
Investment Technology Group, the technology-based equity trading services group, has announced that its European business generated revenues of £20.6 million for the six months ended June 30, 2008. This is 27% up on the same period a year earlier. Pre-tax profit for the first half was £1.6 million compared to £2.3 million the previous year.
ITG - which among other services operates the POSIT® suite of intraday equities crossing systems, offers transaction analysis tools such as ITG TCA® and the Triton® execution management system - said that commission revenue growth was driven by significant volume increases, despite lower share prices and market volumes throughout Europe. Share volume growth was driven primarily by growth in direct market access and increased algorithmic product offerings.
The launch of new products also added impetus in the period. During the first half, ITG enlarged its suite of POSIT crossing systems with the introduction of POSIT Alert™ in February. The latest addition has all the benefits of the existing crossing products but with the added functionality of an alert system which notifies clients each time there is a natural matching opportunity. Another new product launch in the period was within the ITG Algorithms™ suite. Flexible Participation, launched in April, adapts its participation rate according to the price movement of a stock, while minimising transaction costs by intelligent trading in multiple liquidity pools.
Commenting, Alasdair Haynes, CEO of ITG International, said:
"I believe our performance has been a creditable one given the tough market conditions across the world and in particular here in Europe. The so-called 'credit-crunch' has seen the market turnover on European exchanges drop by some 30%* since the second quarter last year, and volatility has been high. We remain convinced that our product suite, which offers liquidity, connectivity, agency execution and analysis is the right one and are hopeful that with careful management we will fare well over the course of 2008 and beyond."
* MSCI Pan-European Index turnover down 32% in Q208 vs Q207
For more information, call Belinda Keheyan/Katherine Ford on 0207 670 4000
About ITG® - ITG® is a global brand that, in Europe, refers to Investment Technology Group Europe Limited ("ITGEL") and/or its parent company, Investment Technology Group Limited ("ITGL"). ITGL and ITGEL are authorised by the Irish Financial Regulator under the European Communities (Markets in Financial Instruments) Regulations 2007 and provide services within other member states in accordance with the Markets in Financial Instruments Directive. ITGL is a member of the London Stock Exchange, Deutsche Börse and Euronext and operates POSIT®, the multilateral trading facility. ITGEL London Branch is regulated by the Financial Services Authority for the conduct of investment business in the UK. Website: www.itg.com