Compagnie Financiere Tradition Posts 8.4% Dip in Adjusted Q2 Revenue

Compagnie Financiere Tradition (CFT), a Swiss interdealer broker and operator of a Japanese retail broking giant, has published its financials for the second quarter of 2021. It ended the period with a consolidated revenue of CHF 213.3 million, which is a decline of 9 percent on a constant exchange rate from Q2 of the previous year.

On an adjusted basis, the Swiss group’s consolidated revenue came in at CHF 231.8 million, compared to CHF 254.5 million generated last year. It was down by 8.4 percent on a constant exchange rate.

Headquartered in Switzerland, CFT is a major interdealer broker in over-the-counter financial and commodity-related products. Additionally, it operates Gaitame, which is one of Japan’s largest retail brokers.

Moreover, the company detailed that the adjusted revenue from its interdealer business (IDB) went down by 8.6 percent in the quarter, while figures generated by the forex trading business for retail investors in Japan (non-IDB) declined by 2.4 percent, both at constant exchange rates.

Despite the quarterly downturn, the company highlighted that July’s revenue figures came in stronger than the previous year.

Following the Industry Trend

CFT’s businesses followed the industry trend to report record revenue in the first two quarters of 2020 with the skyrocketing retail trading demand. But, now with the decline in market volatility, the trading space is correcting itself, at least the industry-wide figures are clearly showing this.

Considering the half-yearly results, CFT’s consolidated revenue went down to CHF 452 million from the previous year’s CHF 512.8, while the adjusted number came in at CHF 491 million, which is a decline of 9.9 percent on constant rates. Further, consolidated revenue from the IDB and non-IDB businesses went down by 9.8 percent and 13.8 percent, respectively.

“The activity of the first semester 2021 should be put into perspective with the exceptional volume of activity in the same period last year, particularly in March and to a lesser extent in April. Indeed, the gradual health crisis resulting from COVID-19 had caused very high volatility in the financial markets positively impacting the Group’s revenue,” the company stated.