Increased market volatility and a surge in government bond issuance helped lift profits at Tullett Prebon, the interdealer broker, prompting a 21 per cent jump in its share price .

“Volatility causes activity,” said Terry Smith, chief executive. “If you’re one of the underlying clients that has got a position in an interest rate contract, or a bond, or has got a foreign currency exposure, the big movements in foreign currency parities and interest rate structures causes them to need to deal.”