Online FX and multi-asset brokerage operator GAIN Capital Holdings, Inc. (NYSE: GCAP) today released an official statement regarding the European Union referendum results, as the markets opened lower in the US to news of the UK voting to leave the EU, and following a global selloff earlier in the session.
Many currencies made record one-day moves, as June 24th 2016 will be remembered as a historic day not just for the UK but for financial markets as well, considering the volatility doesn’t get worse from here as future uncertainty lingers over the Brexit decision.
GAIN not adversely affected today
In an effort to update its clients on its financial position following the extreme market volatility today, as the company holds risk in some of its market-making businesses, the company noted:
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“Gain Capital’s financial position has not been adversely affected as a result of today’s market volatility following the UK’s decision to leave the EU. Heightened volatility around the referendum was anticipated and we took proactive steps to protect our clients and the firm, which included increasing client margin requirements in anticipation of significant market moves.
The Company has robust risk management systems and processes in place and is well equipped to deal with increased trading activity and market turbulence as a result of this outcome.”
The news follows a very dramatic day for currency markets, and financial markets across Asia, Europe, and now in the U.S, where trillions of dollars in market capitalization were wiped off indices, and currencies such as the British pound made historic moves with some pairs moving several thousands of pips.