Compagnie Financière Tradition 2013 Results Even Weaker Than 2012, Revenue Down 8.8% YOY

Switzerland-based capital markets interdealer broker, Compagnie Financière Tradition has today, January 23, released its non-IFRS revenue for the year of 2013, showing a consecutive yearly drop in revenues.

The Group announced a consolidated IFRS revenue of CHF 874.4m at the conclusion of 2013 compared with CHF 958.4m in 2012, a decrease of 8.8% at current exchange rates or 5.7% in constant currencies.

Compagnie Financière Tradition additionally reported lower activity levels in the second half of the year compared with the equivalent period in 2012, with consolidated non-IFRS revenue down 4.9% in constant currencies. In the fourth quarter, consolidated non-IFRS revenue was CHF 206.2m, down 4.1% in constant currencies from Q42012.

In the announcement, the Group explains the continued weak results by saying that last year remained characterized by challenging market conditions, particularly as a result of remaining uncertainty regarding regulation of OTC derivatives markets. Compagnie Financière Tradition operates a Swap Execution Facilities (SEF) since the CFTC’s final rules came into effect on October 2nd, 2013, but mentions that a number of required clarifications have continued to negatively impact the trading volume in the second half of the year.

For the whole of 2013, the Group’s consolidated non-IFRS revenue was CHF 934.1m, compared with CHF 1,017.5m in 2012, a decrease of 4.7% at constant exchange rates. The non-IFRS revenue from Inter-Dealer Broking business (IDB) was down 5.2% in constant currencies, while the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading business for retail investors in Japan (Non-IDB) was up 17.6%.

The geographic breakdown of the Group's consolidated IFRS and non-IFRS revenue: