Compagnie Financière Tradition Revenues Drop 5.8%, Japanese Retail FX Slumps
- With the pace of revenues at the Swiss company dropping slower than a year ago, the company might have an opportunity to capitalise with its ParFX engine, which randomises high-frequency trading order flows.
Swiss-listed major inter-dealer broker offering solutions in several asset classes Compagnie Financière Tradition has announced in a press release its revenue numbers for the first quarter of 2014. The company behind ParFX and FXDD has reported consolidated revenues totalling to $251 million (CHF 221.6m), which compared with CHF 235.3m for the same period in 2013 mark a decline of 5.8% at current Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates and 2.8% in constant currencies.
During the quarter the Group's consolidated adjusted revenue using a proportionate consolidation method for joint ventures has totalled to just shy of $268 million (CHF 236.4m). Within that spectrum the company's inter-dealer broking business (IDB) shrank by 2.7% in constant currencies, while 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 has dropped by 24.9%.
The latter news are not a big surprise considering the lack of direction in the Japanese currency when compared to last year's first quarter. Overall, while the company's revenues keep shrinking year-on-year, the pace in the first quarter of 2014 has receded. With more major banks joining ParFX, some new market opportunities are opening ahead for Compagnie Financière Tradition.
The company's ParFX solution was recently mentioned in media reports which viewed the technology behind it to be possibly applicable to reduce the advantages of high-frequency trading (HFT). The offering has already been successfully implemented in FX by randomising the book order flow, hence removing the advantages which HFT traders enjoy.
As of the publication of this material the company's share price is trading flat on the day around CHF 47.60 with the revenue figures announcement not playing as a big surprise for investors at this point in time.
Swiss-listed major inter-dealer broker offering solutions in several asset classes Compagnie Financière Tradition has announced in a press release its revenue numbers for the first quarter of 2014. The company behind ParFX and FXDD has reported consolidated revenues totalling to $251 million (CHF 221.6m), which compared with CHF 235.3m for the same period in 2013 mark a decline of 5.8% at current Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates and 2.8% in constant currencies.
During the quarter the Group's consolidated adjusted revenue using a proportionate consolidation method for joint ventures has totalled to just shy of $268 million (CHF 236.4m). Within that spectrum the company's inter-dealer broking business (IDB) shrank by 2.7% in constant currencies, while 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 has dropped by 24.9%.
The latter news are not a big surprise considering the lack of direction in the Japanese currency when compared to last year's first quarter. Overall, while the company's revenues keep shrinking year-on-year, the pace in the first quarter of 2014 has receded. With more major banks joining ParFX, some new market opportunities are opening ahead for Compagnie Financière Tradition.
The company's ParFX solution was recently mentioned in media reports which viewed the technology behind it to be possibly applicable to reduce the advantages of high-frequency trading (HFT). The offering has already been successfully implemented in FX by randomising the book order flow, hence removing the advantages which HFT traders enjoy.
As of the publication of this material the company's share price is trading flat on the day around CHF 47.60 with the revenue figures announcement not playing as a big surprise for investors at this point in time.