Japan retail FX revenues down 20% in Q3, parent Tradition up 2.5%

Gaitame Japan forex website

Swiss interdealer broker Compagnie Financière Tradition SA (SWX:CFT) has reported preliminary summary results for Q3 2017, indicating continued weakness in its Japan Retail FX business,

Overall, in the third quarter, consolidated revenue at Tradition was CHF 189.4 million (USD $190 million), compared with CHF 187.5 million in the same period in 2016, representing an increase of 2.5% – but down 4% from CHF $198 million in Q2. 2017. The Group’s consolidated adjusted revenue was CHF 208.0 million against CHF 202.5 million in 2016, up 4.2% in constant currencies with interdealer broking business (IDB) up 5.3%.

However, Tradition reported another fairly slow quarter for its forex trading business for retail investors in Japan (non-IDB) down 20.4%. That follows a first half 2017 report in which Tradition reported that Japan FX revenue was down 28.6% versus the previous year.

Tradition didn’t give an explanation for its issues in Japan, however Yen trading overall has weakened due to several months of continued low volatility. That, despite a hotly contested general election in Japan earlier this month.

For the first nine months of the year, the Tradition Group reported consolidated revenue of CHF 600.8 million (USD $601 million), compared with CHF 612.7 million in the same period in 2016, a decrease of 1.9% in current currencies.

Excluding currency effects, consolidated revenue of Compagnie Financière Tradition was up 0.3% compared to the same period last year.

For the same period, the Group’s consolidated adjusted revenue was CHF 653.7 million compared with CHF 662.5 million in 2016, a decrease of 1.3% in current currencies. However, excluding currency effects, consolidated adjusted revenue was up 1.0%. The adjusted revenue from IDB  as up 2.2% in constant currencies while Non-IDB was down 24.8%.

Compagnie Financière Tradition SA is one of the world’s largest interdealer brokers in over-the-counter financial and commodity related products. Represented in 28 countries, Compagnie Financière Tradition SA employs more than 2,200 people globally and provides broking services for a complete range of financial products (money market products, bonds, interest rate, currency and credit derivatives, equities, equity derivatives, interest rate futures and index futures) and non-financial products (energy and environmental products, and precious metals). Compagnie Financière Tradition SA (CFT) is listed on the SIX Swiss Exchange.

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