XTX Profits From UK Operations Surpass £1 Billion In 2022
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XTX Markets, one of the leading algorithmic trading platforms globally, has reported a significant increase in profits generated from its UK-based operations during the 2022 financial year. The profits realized by the company reached £1.095 billion in 2022, increasing by 64% from the £667 million that was reported in 2021.
XTX Profits from UK operations surpass £1 billion
In 2022, the revenues that XTX generated from UK operations increased by 68% from the £1.477 billion reported during the previous year. The revenues by the company came into £2.485 billion.
The latest figures reported by the company comprise XTX Markets Technologies Limited and two primary revenue generators in the UK, XTX Markets Ltd and XTX Markets Trading Ltd.
XTX reported massive growth in its operations across the UK amid an interest rate hike by central banks and high volatility in the commodities markets because of the ongoing war between Russia and Ukraine.
The UK-based subsidiaries of the company reported an improved performance despite the trend witnessed across the broader equities market. The UK equity market ended the 2022 financial year with modest gains.
XTX reports an improved performance compared to rivals
The FTSE 100 Index is usually used as a benchmark tracking 100 of the largest companies that have been listed on the London Stock Exchange. In 2022, this index reported a 10% marginal increase of 0.9%. On the other hand, the Stoxx 500 Index dropped by 12.4%, reflecting a poor performance across the pan-European market.
On the other hand, the main competitor for XTX, Citadel Securities, reported that its market-making division had generated revenues of $7.5 billion last year. The figure increased by 7% from the $7 billion that was reported during the previous year. The growth shows that XTX has outperformed Citadel Securities during the mentioned period.
Virtu Financial, another rival of XTX, also reported a significant decline in net profits during the year. The company reported a decline in net profits by nearly half during the year. The net profits dropped by 43% from the $827.2 million reported in 2021 to $468.3 million.
On the other hand, the electronic market maker reported a decline in revenues and net trading income in 2022 compared to the previous year. These figures represented a decline in financial performance during the period.
XTX is an electronic market maker that offers liquidity on various asset classes such as equities, forex, and fixed income. The company also gives the clients access to over-the-counter liquidity in forex and metals products.
Toward the end of 2018, XTX released a Systematic Internaliser (SI) targeting the European cash equities market. This platform offers off-exchange liquidity to the market participants. The platform has quickly evolved into the leading SI in Europe.
XTX is a leading liquidity provider globally. By mid-2022, this company accounted for 18% of the passive trading across European equities. The trading technique benefited the long-term investors that were not focused on profiting from short-term price movements.
