Jefferies & Co., following two years of decline, reports its large domestic stock trading business is stabilizing.
In the first nine months of the year, the small- and mid-cap market maker experienced "consistent" revenues in its cash equities business when compared against a similar period in 2010, the company reported.
That’s despite an environment of lower volume and volatility during the period, typically bad news for market makers.
Jefferies’ equities department booked $469 million in total revenues for the first three quarters of 2011. That’s up from $402 million in the same period last year.
The increase reflected a reversal of two years of decline in U.S. equities trading, plus continued growth in prime brokerage and stock trading in Europe and Asia.
Jefferies has grown its prime brokerage from scratch since 2007, its first full year of operation. It now services about 350 hedge funds.
