Tullett Prebon leader says new regulations hampering growth

Marion Dakers
BROKER Tullett Prebon yesterday warned that the raft of new market regulations will wipe out growth at the firm this year, as it reported a seven per cent fall in revenues for 2012.

Chief executive Terry Smith said “considerable uncertainty over the impact of new regulations covering the OTC [over the counter] markets” is likely to keep market activity subdued and outweigh Tullett’s efforts to trim costs.

The broker posted revenues of £850.8m, which would have been 10 per cent down on a year ago if not for acquisitions in the US and Brazil.

A £123m writedown on its struggling North American arm led to a reported pre-tax loss of £34.7m, in line with forecasts.

Smith said the firm has not heard from the Financial Services Authority following reports that Tullett staff were involved in rigging key interest rate Libor.

“In the light of the press coverage, we did actually contact them [the FSA] and said ... please you can help us with this, and they’ve given us no response to that,” he said.