Interdealer broker ICAP Plc, which matches buyers and sellers of bonds, swaps and currencies, said the uncertainty over a possible Greek default and the euro zone's future had reduced risk appetite and trading volume.
ICAP, a broker for interest rates derivatives, commodities, foreign exchange and fixed income products, said while currency volumes had picked up, the lack of a clear picture on the direction and timing of any interest rate moves was weighing on volumes.
ICAP reported a 1 percent drop in group revenue for April 1 to June 30, the first quarter of its financial year, once currency fluctuations had been stripped out.
The interdealer broker has been pinning its hopes on an interest rate hike by the U.S. Federal Reserve to provide a boost to its trading volumes.
Investors said this week that the Greek deal had made it more likely that the U.S. Federal Reserve, which has previously said it would look at the Greek crisis when considering monetary policy, would raise interest rates during 2015.
In its mid-year investment outlook, BlackRock Investment Institute said this week that it expects the Fed to raise short-term rates in the autumn, with the Bank of England likely to follow not long after, either in November this year or February 2016.
The 29-year-old company, which competes with Tullett Prebon and the London Stock Exchange, trimmed costs and pushed further into areas such as electronic trading and post-trade services to diversify its revenue last year.
ICAP combined its electronic trading platforms in fixed income and forex in a restructuring to offset a slump in interdealing broking revenue that plunged last year.
Reported revenue in its electronic markets division rose 14 percent versus a year earlier, ICAP said on Wednesday.
Shares in the London-listed company have risen 46 percent in the last one year.
Short link: