GAIN Capital Trading Volumes Dip in September, RPM Higher in Q3

Quarterly revenue capture per million traded ranged between mid- to high- $90’s according to Glenn Stevens

The average daily trading volumes at GAIN Capital (NYSE:GCAP) dipped 13 per cent month-on-month in September as the broker announced that metrics totaled $14.7 billion. The number is still higher by 35 per cent when compared to last year, however special favors are in play related to the acquisition of City Index.

The total trading volume for over-the-counter products amounted to $322.8 billion, which is lower by 8.9 per cent from August 2015 and higher by 35.1 per cent when compared to the same month last year.

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The number of active accounts totaled 149,846, a mild dip of 0.5 per cent from August 2015 and higher by 59.8 per cent that in September 2014. The number of average daily futures contracts traded totaled 38,072, which is higher by 8.3 per cent than in August 2015 and by 22.9 per cent than in September 2014.
The total amount of futures contracts traded amounted to 799.517 in September, higher by the same 8.3 per cent from last month and by 22.9 per cent when compared to September 2014.

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Looking at GAIN Capital’s (NYSE:GCAP) institutional volume metrics, the average daily volume at GTX totaled $15.8 billion, or lower by 8.5 per cent when compared to August 2015 and 14.0 per cent if we look at September 2014. The total volume for the month amounted to $347.8 billion, which is lower by 4.2 per cent than last month and by 14.0 percent when compared to last September.

Gain-Capital-trading-volumes
GAIN Capital Trading Volumes, September 2015, © Finance Magnates

Commenting on the quarterly volume metrics the company’s CEO, Glenn Stevens, stated: “In Q3 2015, GAIN continued to make strong progress on the integration of City Index, which included a positive response from both legacy GAIN and City Index clients, as well as new customers.”

“The Q3 2015 retail trading environment was more favorable relative to Q2 2015 with higher volatility in indices and commodities resulting in a quarterly retail revenue capture per million (RPM) in the mid- to high- $90s, generally in line with GAIN’s trailing twelve month average,” he concluded.

The higher RPM figure is largely due to increased futures trading and the higher margins that brokers bank when clients are trading those contracts. Increased volatility in equity and commodity markets has shifted the mix of trading appetites amongst customers are they have been drawn by relatively faster markets.

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