Exclusive FNG… FNG has learned through various regulatory filings that London-based firm XTX Markets posted a significant decline in both its top and bottom lines in 2023 for its UK core business, following a record 2022 that saw XTX to have generated £2.5bn in revenue and after net profits of £1.1bn.
In 2023, XTX Markets – through its various UK group companies (see more on this below) – saw revenues of just over £2.0bn, down 19% from 2022, and Net Profits of £835m, decreased by 24% on an annual basis. Still, pretty impressive results for a private trading company with around 200 employees. For comparison, in 2021 XTX made £1.48 billion in revenue and £667 million in profit, so in the long term the company is still growing.
While regulatory filings did not give specific reasons for the reduction in activity, the company reiterated that the strong 2022 performance was due to “favorable conditions in several key markets” – meaning increased market volatility. The less volatile financial markets of 2023 meant soft results.
The financials are the combined total of three XTX UK entities: XTX Markets Technologies Ltd, XTX Markets Ltd and XTX Markets Trading Ltd.
XTX Markets is a quantitative online proprietary trading and market trading firm covering a variety of types of financial instruments. The company is also a leading provider of FX liquidity for e-Spot and Forwards. XTX works with counterparties, exchanges and online trading venues worldwide to provide liquidity in the equity, foreign exchange, fixed income and commodity markets.
XTX was founded and is majority owned by mathematician Alex Gerko. Mr Gerko, who holds a PhD in Mathematics from Moscow State University, renounced his Russian citizenship in 2022 (he is also a British citizen) and has come out strongly against Russia’s invasion of Ukraine. He started his finance career in equities and then FX at Deutsche Bank. Prior to founding XTX, he led the marketing team at GSA Capital.