Special factors

GAIN Capital April Trading Volumes Higher Amid City Index Inclusion

Net of special factors the retail trading metrics have decreased by about 10% when compared to the previous month

GAIN Capital registered increasing volumes in April albeit with special factors included into the metrics. The results reported this morning included close to 45,000 accounts from City Index. GAIN Capital Holdings concluded its acquisition of the U.K. brokerage and this was the first report including accounts from the entity.

Retail OTC trading volumes have increased 20.5% month-on-month to $356.8 billion. The figure is up 101.9% when compared to 2014. The average daily retail OTC trading volume totaled $16.2 billion, which is also 20.5% higher than in March 2015 and 101.9% from April 2014.

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Average trading activity in City Index accounts is currently lower than at GAIN Capital

The acquisition of City Index resulted in active retail OTC accounts to spike higher by 48.1% to 146,666. The figure is 52.7% higher than a year ago. GAIN Capital has added up to 45,000 active accounts from the acquisition. The figure means that the average trading activity in City Index accounts is currently lower than at its parent company.

Based on the historical comparison of the metrics of GAIN Capital and City Index, the figures reported by the latter were about 27% of the combined firms over the past 12 months.

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Referencing this information and factoring that Glenn Stevens said that City Index had encountered some aspects of internal slowdown during the acquisition period, the broker could be estimated to have accounted for 25% of the current April total.

This essentially puts the trading volumes at GAIN Capital, excluding the special factors stemming from the acquisition, to about $270 billion, which is a decline of 9-10 percent. This result is in line with the broad industry trend in April.

Institutional trading volumes remained unaffected by the City Index acquisition. The figures totaled $436.3 billion, which is lower by 17.4% from the previous month and higher by 6.1% from April 2014. Average daily institutional volume totaled $19.8 billion. The figure is lower by 17.4% from March 2015 and higher by 6.1% from April 2014.

Trading volumes at GTX amounted to $409.0 billion, which is a decrease of 17.0 percent from March 2015 and a 10.5 percent increase when compared to last year. Average daily GTX volume totaled $18.6 billion, which is lower by 17.0 percent from March 2015 and a 10.5 percent increase from April 2014.

Exchange-based Futures contracts trades totaled 682,377, which is lower by 26.5 percent from March 2015 and 6.3 percent from last April. Average daily futures contracts trades totaled 32,494 which is lower by 23.0% from March 2015, yet remains higher year-on-year by 11.4 percent.

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