Tullett Prebon four-month revenue falls 4 percent

* Revenue for July-Oct down 4 pct at 233 mln stg

* Year-to-date revenue down 11 pct

* Recent pickup in volatility has prompted more activity

* Shares (Berlin: DI6.BE - news) down 1.7 pct (Adds details, share price)

By Clare Hutchison

LONDON, Nov 7 (Reuters) - Interdealer broker Tullett Prebon (LSE: TLPR.L - news) Plc reported a 4 percent drop in revenue for the four months to end-October as market conditions remained tough, but the company said it had seen higher levels of activity in financial markets in recent weeks.

London-based Tullett, whose brokers match buyers and sellers of currencies, bonds and swaps, said on Friday revenue between July and October reached 233 million pounds ($369 million), compared with 252 million a year earlier.

Revenue for the year to October was down 11 percent at 594 million pounds.

Tullett shares, which had risen earlier this week to their highest in more than a month, were down 1.7 percent at 276 pence at 0847 GMT, making them among the biggest fallers in the FTSE 250 index of medium-sized stocks.

Interdealer brokers' revenues have slumped in recent years due to regulations that have forced their traditional investment banking clients to reduce risky trading activities, as well as efforts to push more derivatives trading onto electronic platforms to make the market more open and safer.

Low interest rates also have dampened market volatility, adding to brokers' woes.

Recent weeks have seen an upswing in volatility, however, due to a number of factors including anxiety over a potential rise in U.S. interest rates and prospects for weaker global growth.

Tullett said the recent pickup in volatility had boosted activity, particularly in the Americas and Asia Pacific.

Activity in Europe and the Middle East improved more modestly, the company added, due to the further flattening and lowering of yield curves.

Revenue in the two months September and October was unchanged compared with the prior year.

Tullett said it was under investigation by Britain's Financial Conduct Authority in relation to the regulator's probe into interest rate benchmark manipulation.

"The company continues to cooperate with regulators and government agencies," Tullett said in a statement. One of its former employees was last week charged by the Serious Fraud Office in connection with Libor rigging.

The company, whose competitors include ICAP (LSE: IAP.L - news) and BGC Partners (Other OTC: PGPHF - news) , said it had received all the necessary approvals for its planned acquisition of oil brokerage PVM. The deal was expected to complete by the end of November. (1 US dollar = 0.6316 British pound) (Editing by Susan Thomas and David Holmes)