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

The Swiss Group's Non-IFRS revenue from its Inter-Dealer Brokering business was down 5.2% in constant currencies compared to last year,

Compagnie Financiere Tradition LogoSwitzerland-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.

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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.

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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 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:

Compagnie Financiere Tradition 2013
(Source: Compagnie Financière Tradition)
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