Shares in ICAP soared in spite of the firm having revealed a drop in revenues in the three months to 31 December 2011.

An interim statement from the institutional broker claimed its revenues fell 7 per cent from a 'strong' third quarter in 2010 due to subdued trading volumes from risk-averse customers.

In the six months to 30 September 2011, ICAP's revenues were £867 million, exactly the same as the corresponding six months in 2010.

However, the firm claimed that it has seen encouraging signs of recovery in January and that it expects full-year profits to 31 March 2012 to be at the upper end of the current analyst range of £336 million to £358 million.

This range is much lower than the £358 million to £390 million predicted by ICAP in November, but investors have reacted positively to the prediction.

Shares in ICAP are currently leading the FTSE 100 up, trading up 8.06 per cent at 363.1p at 9.10am, though this is still nearly 35 per cent lower than its price of 548p this time last year.

Michael Spencer, chief executive officer of ICAP, commented, ‘Like everyone else we saw a significant reduction in risk appetite in November and December. In January we saw encouraging signs of activity starting to return, albeit cautiously in some markets.

‘The wholesale markets play a vital part in the efficient flow of capital around the global economy and ICAP will continue to play a leading role in helping our customers manage and mitigate their risks.’

ICAP has embarked on cost cutting measures in response to lowered trading volumes, reducing its cost base by £20 million by cutting staff numbers in less profitable areas to focus on financial futures and commodities.