GAIN Capital has filed its quarterly 10-Q form with the US Securities and Exchange Commission, showing that the company posted an increase in direct business. The shift in the mix of revenues is largely due to the acquisition of FXCM’s accounts.
The company highlighted in the detailed report to the US regulator that it paid a total of $7 million to FXCM. As Finance Magnates reported in the aftermath of the deal, GAIN Capital paid $500 for every account that executes a trade during the initial 76 day period, and $250 for every account that executed a trade in the 77 days following this.
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As for the third quarter of the year, GAIN Capital’s indirect business accounted for 30.9% of the retail trading volume, compared to 35.3 percent in the first half of the year. The change is driven primarily by the acquisition of FXCM’s US book. Indirect volumes declined to 42.9 percent of the total in Q3, with the H1 figure standing at 44.7 percent.
As expected by GAIN Capital’s management team, the company’s revenues per million rebounded in the second quarter to $122 per million. This figure is more or less in line with the same period of the previous year when the company reported $124 per million.
Shares of GAIN Capital traded materially higher after the earnings report last week. Currently, the company’s stock has fully recovered from the slump induced by the first quarter earnings report in May.