May 22, 2018 / 6:42 AM / a month ago

Volatile markets lift profit at Britain's NEX Group

(Reuters) - Financial technology company NEX Group (NXGN.L), which is being bought by U.S. exchange operator CME Group (CME.O), reported a 9 percent rise in full-year core trading profit on Tuesday, helped by market volatility and growth in emerging markets.

The company, which provides electronic trading platforms for banks, asset managers and companies, said its trading operating profit before one-off items from continuing operations for year ended March 31 rose to 160 million pounds from 147 million pounds.

Revenue from continuing operations rose to 591 million pounds from 541 million pounds a year ago, however, core trading profit numbers were down on one-off charges totalling 13 million pounds.

Shares were trading 0.3 percent down at 0721 GMT.

NEX, formerly known as ICAP, agreed to a $5.5 billion takeover by CME in a bid to create a cross-border powerhouse for investors trading in foreign exchange and government debt markets.

Revenue from NEX Markets, which provides foreign exchange and fixed income trading technology via EBS and BrokerTec platforms, was 326 million pounds, up from 313 million pounds.

Founded and led by Michael Spencer, a high-profile figure in London’s financial industry and former treasurer for Britain’s ruling Conservative party, the company matches buyers and sellers of bonds, swaps and currencies.

NEX shares, up nearly 97 percent since the start of 2016, have received a boost from bouts of market volatility, stemming from unexpected outcomes in global politics, such as Donald Trump’s victory in the U.S. presidential election and Britain’s decision to leave the European Union.

Reporting by Rahul B in Bengaluru, editing by Louise Heavens and Sinead Cruise

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