Gain Q2 2012 interesting facts

As usual Gain Capital released a quarterly earnings presentation for Q2 2012, and as usual it has some interesting facts in it:

Retail trading revenue (quarterly basis) was up at $119.8, on annual basis it was $100.1

• Enhanced CFD offering
  • New platform; launching with 200+ CFD products
    • Indices, commodities, sectors & FX
  • Beta testing began
  • Full release on schedule for September 2012
• Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term.com Canada launch
  • Licensed to offer forex, CFDs and futures
  • One of a small group of regulated firms approved to offer these products
  • 5-7% of our current retail trading volume without direct marketing currently
• Continuing to invest in our higher-growth regions
  • Asia-Pacific (SE Asia & China) and Middle East
• Mobile volumes continue to ramp
  • Over 2x increase between Q2 2011 and Q2 2012
  • 18% of Q2 2012 active accounts traded via mobile
• Actively pursuing M&A opportunities

Open E Cry Acquisition

On June 28, 2012 Gain announced its acquisition of Open E Cry from optionsXpress, a subsidiary of the Charles Schwab Corp.

• Purchase price: $12mm
• Expected to close in Q3 2012

Company Overview

• Online retail provider of Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded futures
• FY 2011 revenue: $13.6mm
• Customers(1): 8,101
• Assets(1): $95.9mm

Transaction Rationale

• New commission revenue stream generated on a per trade basis
• Global expansion of OEC’s geographic footprint
• Cross-selling between futures and FX

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