TP ICAP Regulatory News (TCAP)

6 November 2015

Tullett Prebon plc

Trading Statement

Tullett Prebon plc (the "Company") is today issuing a trading update in relation to the period from 1 July 2015.

Business Update

Our strategic review, the results of which were communicated to the market in June this year, concluded that the central role played by interdealer brokers at the heart of the global wholesale OTC markets remains secure, but that revenue declines were likely to continue in a number of traditional interdealer broker products.

Over the summer and through September and October the level of activity in the wholesale OTC financial markets has continued to be under pressure from the structural and cyclical factors affecting the interdealer broker industry. Market volumes continue to be adversely affected by the more onerous regulatory environment applicable to many of our bank customers whose trading activity has been suppressed by the deleveraging of their balance sheets and lower risk appetite. The continuation of low interest rate conditions and compressed bond market spreads in Europe has further dampened activity, particularly in Interest Rate Derivatives and Fixed Income products.

The strategic review concluded that the Energy and commodities markets do not currently face all the same pressures as the traditional interdealer broker product areas, and we have continued to benefit from the investments we have made in this sector. The performance of PVM Oil Associates Limited and its subsidiaries ("PVM"), which was acquired in November last year, has continued to be strong. PVM's main activities are in crude oil and petroleum products, and the business has continued to benefit from the level of activity in the oil and related products markets, which picked up following the significant changes in the oil price experienced since the start of the second half of 2014.

Revenue in the four months July to October of £255m was 9% higher than the £233m reported for the same period last year. Excluding PVM, revenue in the four months July to October was 5% lower at constant exchange rates than in the same period last year.

Year to date (January to October) revenue of £671m was 13% higher than the £594m reported for the same period last year. Excluding PVM, year to date revenue was 3% lower at constant exchange rates than in the same period last year.

We have continued to invest in the business's capabilities to identify and implement business initiatives. We have also continued to roll out our cultural, legal, compliance and risk governance frameworks to deliver our commitment to instil and embed the highest standards of conduct. As set out in our interim results announcement, these investments, increasing regulatory related costs, and the impact of the areas of business weakness, are expected to offset the improvement in the operating margin compared with that delivered last year. The further decline in revenue during the second half puts further pressure on the operating margin. The 2015 full year underlying operating profit margin is now expected to be approximately 1.5% points lower than last year.

In the light of the further reduction in market volumes since the end of June, particularly in Europe, further action is being taken to reduce headcount and fixed costs in the affected areas. These actions are expected to result in a reduction of around 5% in the front office headcount in the traditional interdealer product areas. The cost of these actions will be charged as an exceptional item in the 2015 accounts.

The Company was voted the number one interdealer broker in Currency in Risk magazine's 2015 annual interdealer rankings published in September, and was named Interest Rates Broker of the Year, and SEF of the Year, in the 2015 GlobalCapital awards.

The Company's financial position remains strong.

Enquiries:

Paul Mainwaring

Finance Director, Tullett Prebon plc

Direct: +44 (0)20 7200 7995

Email: pmainwaring@tullettprebon.com

Stephen Breslin

Group Head of Communications, Tullett Prebon plc

Direct: +44(0)20 7200 7750

Email: sbreslin@tullettprebon.com

Craig Breheny

Brunswick Group LLP

Direct: +44(0)20 7396 7429

Email: cbreheny@brunswickgroup.com