Tradition Reports First Half Revenues, CHF 425.4 mln, down 7.8% YoY

According to a company announcement, the first half of 2014 has been slower for Switzerland-based Compagnie Financière Tradition, with revenues coming in at CHF 425.4m, which is down 7.8% in constant currencies and lower by 10.6% in constant exchange rates terms. The challenging market environment and the ongoing market structure changes in the over-the-counter (OTC) derivatives markets associated with increased regulatory scrutiny have been cited as the main reasons for the decline in revenues at the company.

The firm's adjusted revenue from inter-dealer broking business (IDB) was reported down 7.8% in constant currencies, while the firm's Japanese retail

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

business, Meitan Tradition, has shed 37.2%, as the one-off increase in volumes following the unprecedented monetary easing by the Bank of Japan in April last year. The resulting overall Asian business decline can be clearly seen on the table below, which has the revenue streams of the company broken down by regions.

The company's

Swap Execution Facility

(SEF) was approved by the CFTC back in September 2013, and it onboarded Lloyds Bank to join its Trad-X

Multilateral Trading Facility

in the beginning of 2014 as Founder. The platform is used to trade interest rates

Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term

, bringing record trading volumes for both May and June.

For the second quarter, the company's consolidated revenue has totalled CHF 203.8m, which is lower by 12.8% in constant currencies from Q2 2013. Inter-dealer broking business (IDB) was down 13.0%, while non-IDB shed 48.6%.