Monex Reports Lower Revenues Due to TradeStation and Crypto Operations Net Loss

Compagnie Financière Tradition Revenues Drop 5.8%, Japanese Retail FX Slumps

by Victor Golovtchenko
  • 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.
Compagnie Financière Tradition Revenues Drop 5.8%, Japanese Retail FX Slumps
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Compagnie Financiere Tradition Logo

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 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 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.

Compagnie Financiere Tradition Logo

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 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 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.

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