GAIN Capital Boosts Share Buyback Program as FX Volatility Comes Back

GAIN Capital commits $35 million just as the currency and stock markets are being roiled by the Comey-Trump saga.

Retail foreign exchange and CFDs brokerage GAIN Capital is expanding its share buyback program. The company made the announcement earlier today just as global markets are getting roiled by the latest chapter in the Trump-Comey saga.

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GAIN Capital’s shares have hit a low of $5.56 this week, trading near levels last seen just after the US election. The company’s management seems to be confident enough on future volatility, as CEO Glenn Stevens outlined during the broker’s latest earnings call.

We firmly believe in our long-term growth prospects and feel that our current share price does not accurately reflect the full value of the company

Stevens said that the company expects that its second quarter results are rather a blip than a trend, highlighting that the last quarter of 2016 and the first one of 2017 are netting a result that is close to the mean.

Buyback Expanded to $35 million

GAIN Capital has expanded its share buyback program to a limit of $35 million, a figure which is almost double the amount that was approved as of March 31st 2017.

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The move comes just in time for the next batch of volatility across global markets. Overnight, the US dollar and US shares were pummeled as growing concerns about the administration of Donald Trump are worrying investors.

Commenting on the announcement, the CEO of GAIN Capital, Glenn Stevens, said: “Our Board of Directors and management team firmly believe in our long-term growth prospects and feel that our current share price does not accurately reflect the full value of the company.”

“The additional authorized repurchase capacity demonstrates our confidence in the strength of the business and our commitment to efficient capital allocation and value creation for shareholders,” Stevens elaborated.

Currency and Stocks Volatility Comes Back

GAIN Capital’s management is announcing this news just a day after the hardest test for the Trump presidency became reality. Reports about the US President sharing intelligence with Russian officials were quickly followed up with the claim that he suggested that James Comey drop the investigation into Michael Flynn.

Trading volumes spiked across the board yesterday with ECNs that are reporting results on a daily basis like Hotspot and Fastmatch reporting the strongest metrics since the end of April. The final week of April saved the day for brokers, as for most of the month brokers struggled to attract flow, due to stagnation in volatility across currency and stock markets worldwide.

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