This first half of 2014 was characterized by a challenging environment with a low volatility on significant asset classes as well as a continued evolving market structure as a result of regulatory developments and related uncertainties in particular regarding OTC derivative markets. In the context of these regulatory developments in the United States, the Group successfully developed the activities and positioning of Tradition SEF, especially through Trad-X, Tradition’s market leading hybrid trading platform for interest rate swaps, which hit record electronic trading volumes for US dollar swaps consecutively in May and June.
Against this backdrop, the Group reported first-half consolidated revenue of CHF 425.4m, compared with CHF 475.9m in same period in 2013, a decline of 10.6% at current exchange rates or 7.8% in constant currencies.
For the same period, the Group’s consolidated adjusted revenue was CHF 452.3m, compared with CHF 510.8m in 2013, a decline of 8.7% at constant exchange rates. The adjusted revenue from interdealer broking business (IDB) was down 7.8% in constant currencies while the forex trading business for retail investors in Japan (Non-IDB) was down 37.2%.
The geographic breakdown of consolidated reported and adjusted revenue is as follows:
In the second quarter, consolidated revenue was CHF 203.8m, down 12.8% in constant currencies from the equivalent quarter last year. The Group’s consolidated adjusted revenue was CHF 215.9m, down 14.0% at constant exchange rates with IDB down 13.0% and Non-IDB down 48.6%.