FNG Exclusive… FNG has learned via various regulatory filings that London based algo trading and market making firm XTX Markets saw a significant decline on both its top and bottom line in 2023 for its main UK business, following a record 2022 that saw XTX bring in £2.5 billion in Revenues, and post Net Profit of £1.1 billion.
In 2023, XTX Markets – via its various UK group companies (see more on that below) – saw Revenues of just over £2.0 billion, down 19% from 2022, and Net Profit of £835 million, down 24% YoY. Still, fairly impressive results for a private trading company with about 200 employees. For comparison, in 2021 XTX did £1.48 billion in Revenue and £667 million in Profits, so from a long-term view the company is still growing.
While the regulatory filings did not give specific reasons for the decline in activity, the company did reiterate that 2022’s strong performance was driven by “favourable conditions in several key markets” – meaning heightened market volatility. 2023’s less volatile financial markets meant softened results.
The financial figures 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-driven electronic proprietary trading and market-maker firm covering a variety of financial instrument types. The company is also a leading FX liquidity provider for e-Spot and Forwards. XTX partners with counterparties, exchanges and e-trading venues globally to provide liquidity in the equity, FX, 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 financial career in equities and subsequently in FX at Deutsche Bank. Before founding XTX he headed up the market-making team at GSA Capital.
