TP ICAP bounced back to trading at the start of the pandemic
The major shift in culture from home to work has led to traders having less desire for risk.
That’s the view of TP ICAP, one of the world’s largest brokers, as reported by The Times.
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The company, which promotes trading in financial markets, said its clients have become more cautious during the pandemic.
Senior staff at TP ICAP said that some traders are more hesitant about certain transactions, citing internet connections that could affect the audit trail of transactions.
“You’re at risk for something that’s fast, breakdowns,” said Robin Stewart, finance chief at TP ICAP. “You can incorrectly report it because your internet may go down.”
There have been tweets about introducing stricter risk limits among banks due to the challenge of monitoring activities when traders work remotely.
The decline in risk-taking has resulted in a quiet period of markets in the first half of 2021.
TP ICAP saw bounces at the start of the pandemic, as trading activity energised high volatility. However, these days, it has been restrained as milder conditions have returned.
The broker’s stock price fell 21p (10.7%) after saying its full-year operating profit margin was likely to fall year-on-year due to revenues against the dollar and strength of Sterling.
