The
FCA-regulated ParFX experienced a 14% drop in revenue in 2023 due to a decrease
in client numbers, with net profit shrinking by 84% to $934,000. However, the
wholesale electronic trading platform for spot Forex products, a subsidiary of
the Tradition UK Group, plans to expand its global distribution network and
broaden its "FX electronic trading community."
ParFX’s Revenue Decline
and Profit Squeeze in 2023
According
to ParFX’s 2023 report, revenue fell to $4.8 million, a 14% decrease from $5.6
million reported the previous year. An increase in administrative costs to $3.5
million caused operating profit to shrink to $1.2 million from $2.1 million,
while net profit dropped below $1 million.
This
represented a decline of over 80% from the $1.7 million reported in 2022.
"The
Directors are satisfied that the Company has adequate resources to continue to
operate as a going concern for the period covering up to at least 12 months
from the date the financial statements are authorized for issuance, and the
financial statements have been prepared on this basis," the report stated.
A breakdown
of revenue by product group shows that electronic brokerage services accounted
for the vast majority ($3.3 million), while API connection fees generated $1.3
million.
ParFX is a
wholesale electronic spot FX that aims to bring transparency to
the global foreign exchange market. Launched in 2013 by Tradition, one of the
world’s largest interdealer brokers, ParFX operates under the leadership of CEO
Dan Marcus and COO Roger Rutherford. The company, regulated by the UK’s FCA, offers
services to both banks and non-bank institutions, including hedge funds, asset
managers, pension funds, and corporations.
How Did Other UK Firms’
Reports Fare?
In July,
several other UK-registered financial firms also presented their 2023 financial
reports. Among them was Equiti Capital UK, whose income declined by 30% despite
an increase in revenue.
The
company’s trading revenue for 2023 surpassed $31 million, showing a modest
increase from the $30.5 million reported in the previous year. However, an
examination of the profit and loss statement reveals that higher operating
expenses led to a decrease in profit before tax from $1.8 million to $1.5
million. This ultimately resulted in a net profit of $1.1 million, representing
a decline of over 30% compared to the $1.6 million reported in 2022.
Meanwhile,
Sucden Financial reported a 30% increase in profit. The London-based firm
announced a profit before taxation of £23.9 million for the year ending
December 31, 2023, up from £18.4 million in 2022. The company’s total net
assets grew to £168.5 million from £160.7 million in the previous year.
July also
saw the release of giant Revolut’s report, which showed a 95% increase
in revenue and a record profit of £344 million. This marked a significant
turnaround from the £25.4 million loss reported in the previous year.
The
FCA-regulated ParFX experienced a 14% drop in revenue in 2023 due to a decrease
in client numbers, with net profit shrinking by 84% to $934,000. However, the
wholesale electronic trading platform for spot Forex products, a subsidiary of
the Tradition UK Group, plans to expand its global distribution network and
broaden its "FX electronic trading community."
ParFX’s Revenue Decline
and Profit Squeeze in 2023
According
to ParFX’s 2023 report, revenue fell to $4.8 million, a 14% decrease from $5.6
million reported the previous year. An increase in administrative costs to $3.5
million caused operating profit to shrink to $1.2 million from $2.1 million,
while net profit dropped below $1 million.
This
represented a decline of over 80% from the $1.7 million reported in 2022.
"The
Directors are satisfied that the Company has adequate resources to continue to
operate as a going concern for the period covering up to at least 12 months
from the date the financial statements are authorized for issuance, and the
financial statements have been prepared on this basis," the report stated.
A breakdown
of revenue by product group shows that electronic brokerage services accounted
for the vast majority ($3.3 million), while API connection fees generated $1.3
million.
ParFX is a
wholesale electronic spot FX that aims to bring transparency to
the global foreign exchange market. Launched in 2013 by Tradition, one of the
world’s largest interdealer brokers, ParFX operates under the leadership of CEO
Dan Marcus and COO Roger Rutherford. The company, regulated by the UK’s FCA, offers
services to both banks and non-bank institutions, including hedge funds, asset
managers, pension funds, and corporations.
How Did Other UK Firms’
Reports Fare?
In July,
several other UK-registered financial firms also presented their 2023 financial
reports. Among them was Equiti Capital UK, whose income declined by 30% despite
an increase in revenue.
The
company’s trading revenue for 2023 surpassed $31 million, showing a modest
increase from the $30.5 million reported in the previous year. However, an
examination of the profit and loss statement reveals that higher operating
expenses led to a decrease in profit before tax from $1.8 million to $1.5
million. This ultimately resulted in a net profit of $1.1 million, representing
a decline of over 30% compared to the $1.6 million reported in 2022.
Meanwhile,
Sucden Financial reported a 30% increase in profit. The London-based firm
announced a profit before taxation of £23.9 million for the year ending
December 31, 2023, up from £18.4 million in 2022. The company’s total net
assets grew to £168.5 million from £160.7 million in the previous year.
July also
saw the release of giant Revolut’s report, which showed a 95% increase
in revenue and a record profit of £344 million. This marked a significant
turnaround from the £25.4 million loss reported in the previous year.