XTX Markets' 2022 Profits Hit Record £1.1B

XTX Markets, a leading quantitative-driven electronic market-maker, made a record £1.1bn profit last year from its UK entities, cementing the trading firm's position as one of the world's top financial market players.

Profits at the London-based company jumped 64 percent in 2022 compared with 2021, according to the Companies House filing. XTX benefited from market volatility triggered by shifting expectations for global central bank policies, sharply rising interest rates and volatility in commodity markets following Russia's full-scale invasion of Ukraine. 

XTX has grown to become one of the world's biggest proprietary trading and market-making firms, making founder Alexander Gerko, a mathematician and former Deutsche Bank trader, one of the wealthiest people in the UK.

Revenues at the market maker jumped 68 percent, from £1.5bn in 2021 to £2.5bn in 2022. The figures are for earnings at XTX’s three UK entities, which represent its trading, technology and markets units.

The strong performance by XTX, which trades markets globally, comes despite a tough period for the UK's own equity market and many financial companies whose businesses depend on it.

The private firm has more than 190 employees globally but no human traders. It uses algorithms to trade the difference in market prices across various venues.

Earlier this year, XTX promoted former JPMorgan executive Hans Buehler to co-chief executive alongside Gerko.

(Source: Financial Times)