GAIN Capital Snaps Momentum, Sees FX Volumes Dive MoM

Retail volumes could not get back on track during November, underpinned by a lack of trading volatility.

Just one month after seeing a mild rebound in its trading volumes, GAIN Capital Holdings, Inc. (NYSE: GCAP) saw its key metrics take a tumble in November 2019.

On par with the rest of the retail industry, Gain Capital’s trading statistics were the result of declining volatility in the industry. This fall was evident over both a monthly and yearly timetable, erasing all of its recent momentum seen last month.

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In particular, GAIN Capital’s retail clients transacted a total of $125.6 billion in November 2019, down 26.9 percent month-over-month from $171.9 billion in October 2019.

Over a yearly timetable, GAIN’s latest retail OTC volume was also appreciably lower by 39.4 percent from $207.2 billion in November 2018.

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This latest figure has corroborated a downtrend in recent months when measured against GAIN’s 2018 counterpart. In 2019, FX volumes have by and large, lagged behind, a trend shared by other industry participants.

Moreover, the group’s average daily volumes (ADVs) came in at $6.0 billion in November 2019, down 20 percent month-over-month from $7.5 billion per day in October 2019. This was even higher on a yearly basis, falling 36.2 percent from $9.4 billion in the year prior.

Meanwhile, active accounts in the retail segment did rise, totaling 121,801 in November 2019. This constituted a subtle increase on a monthly basis from 120,807 accounts in October 2019. This reading is, however, lower, relative to 123,932 accounts in November 2018.

Futures trading sees dip

Futures trading also continued a fall swoon in November, declining to 477,916 contracts. This corresponded to a loss of 19.5 percent month-over-month when weighed against 594,021 contracts in October 2019.

By extension, futures contracts also plunged by 26.9 percent relative to November 2018, having recorded a reading of 654,077 contracts during that period.

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