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## Trading revenue 

The effectiveness of Macquarie’s risk management methodology can be measured by Macquarie's daily trading results. In light of uncertain market conditions, the small quantity and magnitude of daily losses incurred by Macquarie are indicative of both an effective risk management framework and business operations focused on servicing client needs. 

Macquarie's market risk activities continue to be based on earning income from spreads, franchise businesses and client flows. The majority of trading income is derived from client franchise activities rather than outright proprietary trading activity. 

Macquarie’s trading approach has shown consistent profits and low volatility in trading results over time. This is evident in the graph below, and reflects the client-based nature of trading activities. In FY2014 Macquarie made a net trading profit on 220 out of the 261 trading days (2013 results: 221 out of 260 trading days). 

## Daily Trading Profit and Loss 

## Non-traded market risk 

Macquarie also has exposure to non-traded interest rate risk, generated by banking products such as loans and deposits. Interest rate exposures, where possible, are transferred into the trading books of FICC and Group Treasury and managed under market risk limits. However, some residual interest rate risks remain in the banking book due to factors outside the interest rate market or due to timing differences in accumulating exposures large enough to hedge. These residual risks in the banking book are monitored and controlled by RMG and reported to senior management regularly. 

<img src='content_image/265922.jpg'>

