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Aquis Exchange reports pre-tax profits up 64% despite tough conditions

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Challenger UK stock exchange Aquis [LON: AQX] has reported some positive new figures to the market this morning, with net revenue up 17% to GBP 9.7m. EBITDA was also up 26% to GBP 1.7m.

Aquis said that all four of the exchange’s core divisions were profitable for the six month period to the end of June this year. Aquis Data said that its own revenues were up 34% and that there had been significant progress towards launching an EU consolidated tape.

Aquis Exchange is a developer of next-generation financial markets solutions, combining stock exchange, trading venues and technology offerings. Its four divisions comprise market (lit and dark order books), technologies, the stock market itself, and data.

Aquis CEO Alasdair Haynes said that the exchange was experiencing “a year of continued momentum”. The exchange has already successfully integrated the Aquis Matching Pool which has translated into increased revenues. It has also added block trading via OptimX Markets and has changed its proprietary trading rule to give members greater execution choice.

The changes being made within the exchange are designed to form the foundation stone for further growth, Haynes said.

AQSE issuer revenue up 29%

Issuer revenue increased by 29% over the six month period as the number of admissions continues. There are currently 104 securities listed on AQSE.

Also of interest was news that the Aquis technology contract pipeline has continued to develop, with a renewal and an extension over the period demonstrating the long-term nature of the exchange’s strategic relationships.

Haynes said he was positive on the long term potential of the exchange, despite the current challenging market conditions. The fact that it remains profitable is a good indicator for investors what is achievable via Aquis over the medium term as equity market sentiment recovers.

“With economic uncertainty continuing to affect all market participants, we are pleased to be delivering continued growth, strategic progress and value for shareholders,” Haynes said. “We have had a positive start to 2023, with continued revenue growth across all divisions and trading remains in line with board expectations for the full year.”

It was interesting to see that the group’s pan-European secondary trading equities market, which comprises the UK MTF and the French MTF servicing European markets, saw average market share increase. Aquis has been growing its product offering here with the introduction of a dark lit to lit order sweep function. It has also seen strong demand for its auction on demand product.

Changes to proprietary trading rule

Aquis has recently announced changes to its proprietary trading rule on its UK and EU trading platforms, in response to member demand. This will allow liquidity providers to choose whether to interact with  aggressive non-client proprietary trading or not. It provides Aquis members with greater choice and immediacy of execution. The exchange said that it expects this to positively contribute to growth in market share over the medium term.

In Q1 Aquis launched Aquis Equinox, the world’s first 24/7, no downtime matching engine. It said its technology division continues to make excellent progress in its cloud services offering and hopes this will help it to realise further synergies within the group’s other trading platforms.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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