Getting listed seems to be the new trend for Currency brokers. 2010 saw two of the leading names in retail FX float their firms on the New York Stock Exchange thus sending shock waves in the industry. The industry at large is fighting a tough battle to ‘clean’ up the FX markets.
FXall (FX Alliance) part of the big 5 in institutional Forex is joining hands with the elite of listed FX brokers, by announcing its application with the SEC proposing an initial public offering. The number of shares to be sold and the price range for the proposed offering have not yet been determined. BofA Merrill Lynch, Goldman, Sachs & Co., Citigroup and J.P. Morgan Securities LLC are acting as joint book-running managers for the proposed offering. Morgan Stanley, UBS Investment Bank, Raymond James & Associates, and Sandler O’Neill & Partners, L.P. are acting as co-managers.
The application shows the firm is growing at very fast pace and currently handles around 2% of the total daily volumes in FX ($4trillion BIS survey 2010) .
During the past five years, the average daily trading volume on their platform, calculated by counting one side of a transaction, has grown from $37.5 billion in 2006 to $62.3 billion in 2010, representing a compound annual growth rate, or “CAGR,” of 13.5%. In the first half of 2011, their average daily trading volume further grew to $81.4 billion, representing approximately 2% of the global FX average daily trading volume during the same time period.
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In July 2011, they experienced record trading volume of $140 billion in a single day resulting from increased trading across all their trading systems. In 2010, FXall generated $99.1 million in total revenues, $46.6 million of Adjusted EBITDA, $22.5 million of Adjusted Net Income and $21.2 million of net income, which have grown at CAGRs of 11.6%, 18.5%, 16.9% and 11.4%, respectively, since 2006.
For the twelve months ended June 30, 2011, they generated $106.3 million in total revenues, $50.1 million of Adjusted EBITDA, $23.6 million of Adjusted Net Income and $21.3 million of net income.
August 2011 has been a record month for the leading firms as Hotspot saw a phenomenal 286 million messages hit its matching engine; daily volumes averaged $63 billion. Icap’s EBS handled average daily volume of $186.9 billion a day; August was the busiest month since May 2010. FX futures also witnessed strong August trade volumes as daily volumes hit $137 billion on CME.
FXall is keen to develop its market share, they are looking at expanding their product offering, they are looking to maximise their current relationships with clients and see more volume on their platform and are looking at now opportunities withier through alliances or acquisitions.
Forexmagnates’ team has been looking at IPO’s in the FX markets and has an exclusive report on who it thinks will be crowned Next – Quarter Three Report coming out shortly.