GAIN Capital Sees June Trading Volumes Tick Higher

GAIN Capital Holdings, Inc. (NYSE: GCAP) has published its monthly metrics for June 2016. Both the retail and institutional trading volumes were up from the month of May 2016, as per an official statement.

Delving into the figures, retail OTC trading volume reached $231.7 billion, an increase of 3.7% from May 2016 and a decrease of 43.7% from June 2015. Average daily retail OTC trading reached a volume of $10.5 billion, an increase of 3.7% from May 2016 and a decrease of 43.7% from June 2015. Active retail OTC accounts were marginally higher from May 2016, coming in at 139,022, up 0.1% from last month, but saw a strong drop of 6.5% YoY from June 2015.

The institutional side of the business continued to perform strongly, with a healthy 40.1% MoM increase in ECN trading volumes, which came in at $212.3 billion for the month of June 2016, netting average daily volume (ADV) of $9.6 billion, an increase of 17.9% from June 2015. The ECN volume presents the amount of spot FX and non-deliverable forwards (NDFs) trading executed through GTX platform.

Meanwhile, swap dealer average daily volume came at $2.4 billion, a decrease of 15.5% from May 2016 and 8.9% from June 2015. The total swap dealer volumes, which includes spot, forwards, swaps, options and non-deliverable forwards executed by GAIN Capital’s registered swap dealer, was $53.4 billion.

Futures Metrics

In terms of GAIN’s futures contracts, the figure came in at 727,633 in June 2016, incurring a marginal decline of 0.3% from the prior month. Across a yearly timeframe though, June 2016 showed a more upbeat picture, mounting an increase of 4.6% from June 2015. Furthermore, futures average daily contracts were numbered at 33,074, a decrease of 4.8% from May 2016 and an increase of 4.6% from June 2015. Finally, active futures accounts were reported at 8,822, a decrease of 0.6% from May 2016 and an increase of 0.3% from June 2015.

Commenting on the recent metrics, Glenn Stevens, CEO of GAIN Capital, said: "The lead-up to and market reaction following mid-June's Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum led to an increase in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term which resulted in GAIN's Q2 2016 retail revenue per million tracking roughly 10% above our Q1 2016 levels."

"In addition, retail volume generated from the indirect business represented 48% of total retail OTC trading volume in the quarter," Mr. Stevens concluded.