GAIN Capital Reports Second Consecutive Month of Volume Declines

Trading volumes at GAIN Capital continue lower in the aftermath of the ESMA’s new regulations

GAIN Capital has just reported on the company’s trading volumes metrics for September. The company is marking a second consecutive monthly decline in the aftermath of the new regulatory restrictions on leverage in Europe.

The month-on-month decline is particularly unusual for the company for September. Traditionally the month has been upbeat for brokers due to the seasonally low activity in August.

As to the numbers, the total trading volume executed by retail clients last month was $149.6 billion. The figure is lower by 26.2 percent when compared to September 2017 and down by 14.3 percent from August this year.

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Looking at the average daily numbers, GAIN Capital marked $7.5 billion per day a more modest decline of 1.3 percent month-on-month and by 21.9 percent year-on-year.

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ESMA Bites

The ongoing adaptation of retail brokers to the new European regulatory environment is hitting trading volumes hard. GAIN Capital owns two major trading brands: Forex.com and Citi Index. The latter is particularly heavily exposed to the UK market.

The changes in leverage which brokers implemented since the beginning of August are having a big impact. The three-month trailing number of active clients at GAIN Capital declined by 2.1 percent from August and by 13 percent from September 2017 to 71,597.

Offsetting the decline in the OTC trading space, the futures segment registered an increase. At 554,687 contracts traded, the figure was higher by 16 percent year-on-year. The number was still lower when compared to August by 3.7 percent.

Active futures accounts remained stable at 7,550, which is flat month-on-month and lower by 6.3 percent when compared to last year.     

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