Retail OTC volume totaled to $522.2 billion, or higher by 13% while institutional trading topped 2013's figures by 27% coming in at $1.3 trillion during the quarter, total retail client assets rose by 76%.
GAIN Capital announced that during the second quarter of 2014 it lost $5.2 million or $(0.13) per diluted share, compared to $17.2 million or $0.44 a share a year ago. The company has reported net revenues totaling $69.7 million, which is lower by 5% from a year ago and a touch less than 13% when compared to revised revenues for the first quarter of 2014.
While key operating metrics were reported as higher, with the company's Retail OTC volume totaling $522.2 billion, or higher by 13%, and institutional trading topping 2013's figures by 27% coming in at $1.3 trillion during the quarter, the most stark difference emerges when we compare the total retail client assets figures which total $840 million, higher by 76% when compared to a year ago.
The company's retail revenues per $ million dropped below the low range of profitability targets, as stated by the company's CEO Glenn Stevens in previous conference calls, between $80 and $120 and currently at $70.
Retail OTC Business
Revenues generated from the company's retail OTC business totaled $36.4 million in the second quarter, which is lower by almost 37% when compared to the second quarter of 2013, primarily due to the significant difference in FX Volatility last year. The number of retail OTC funded accounts has grown by 37% and 95% from the year ago quarter to 120,236 and $671 million respectively.
Institutional Sales and Trading
GAIN Capital's institutional sales and trading businesses, namely GTX and sales trader, generated a total revenue of $23.5 million in the second quarter which compares to $7.8 million for the same period in 2013. The company has outlined the purchase of all the intellectual property powering the GTX ECN technology, which was completed in the second quarter. According to the earnings release, the company expects the move to result in an increase of its institutional ECN business over the long-term. According to the results, the sales trader business recorded strong results in the second quarter, boosted by strong trading volumes across a mix of asset classes, including European equities.
The Exchange traded futures business of GAIN Capital has generated revenue totaling $8.9 million in the second quarter of 2014, compared to $6.4 million during the same period in 2013. Average daily futures contracts reached 26,322 in the second quarter, which is higher by 19% when compared to last year and 5% lower than throughout the first quarter of 2014.
Restated First Quarter Results
In the run-up to its second quarter earnings results on August 8, 2014, the Audit Committee of the Board of Directors of GAIN Capital Holdings, Inc. concluded that the financial statements contained in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, should no longer be relied upon. The company has understated its trading revenue for Q1 of 2014 by $4.2 million to $79.9 million, while net income was revised to $3.8 million, which is an adjustment higher by $2.1 million. The cause was pointed out as an isolated error and has been identified and fixed.
M&A Pipeline Still Remaining Robust?
The company announced that it had almost doubled its commissions businesses, and that its focus on expense management continues, a statement which sounded a bit controversial as at the same time “the M&A pipeline remains robust with several transactions in various stages of negotiations."
The company’s CEO, Glenn Stevens, has outlined that there is enough room to cut expenses to reach the firm’s target without hammering the efforts of expanding the company’s business at a relatively good time for M&A. He stated that the current environment is not a result of secular changes, but cyclical changes and “ultimately currency ranges do break out."
According to Mr. Stevens, the firm is “positioned from benefitting from a correction back to normal volatility levels," however, he highlighted that a broader product mix is incoming as the company relies more on multitude products and less on pure currency play. Non-FX products volumes levels have been rising, with diversification with CFDs and single stock CFDs permitting to look for ways to deliver desired products to multiple geographies.
The ratio between direct and non-direct revenues at GAIN Capital has been stated at around 50:50, meaning that half of the company’s revenues now come from white label partners.
Shares of GAIN Capital traded lower by 9.8% in after-market hours as investors seem to be materially worried about the expense side of the company's business.
GAIN Capital announced that during the second quarter of 2014 it lost $5.2 million or $(0.13) per diluted share, compared to $17.2 million or $0.44 a share a year ago. The company has reported net revenues totaling $69.7 million, which is lower by 5% from a year ago and a touch less than 13% when compared to revised revenues for the first quarter of 2014.
While key operating metrics were reported as higher, with the company's Retail OTC volume totaling $522.2 billion, or higher by 13%, and institutional trading topping 2013's figures by 27% coming in at $1.3 trillion during the quarter, the most stark difference emerges when we compare the total retail client assets figures which total $840 million, higher by 76% when compared to a year ago.
The company's retail revenues per $ million dropped below the low range of profitability targets, as stated by the company's CEO Glenn Stevens in previous conference calls, between $80 and $120 and currently at $70.
Retail OTC Business
Revenues generated from the company's retail OTC business totaled $36.4 million in the second quarter, which is lower by almost 37% when compared to the second quarter of 2013, primarily due to the significant difference in FX Volatility last year. The number of retail OTC funded accounts has grown by 37% and 95% from the year ago quarter to 120,236 and $671 million respectively.
Institutional Sales and Trading
GAIN Capital's institutional sales and trading businesses, namely GTX and sales trader, generated a total revenue of $23.5 million in the second quarter which compares to $7.8 million for the same period in 2013. The company has outlined the purchase of all the intellectual property powering the GTX ECN technology, which was completed in the second quarter. According to the earnings release, the company expects the move to result in an increase of its institutional ECN business over the long-term. According to the results, the sales trader business recorded strong results in the second quarter, boosted by strong trading volumes across a mix of asset classes, including European equities.
The Exchange traded futures business of GAIN Capital has generated revenue totaling $8.9 million in the second quarter of 2014, compared to $6.4 million during the same period in 2013. Average daily futures contracts reached 26,322 in the second quarter, which is higher by 19% when compared to last year and 5% lower than throughout the first quarter of 2014.
Restated First Quarter Results
In the run-up to its second quarter earnings results on August 8, 2014, the Audit Committee of the Board of Directors of GAIN Capital Holdings, Inc. concluded that the financial statements contained in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, should no longer be relied upon. The company has understated its trading revenue for Q1 of 2014 by $4.2 million to $79.9 million, while net income was revised to $3.8 million, which is an adjustment higher by $2.1 million. The cause was pointed out as an isolated error and has been identified and fixed.
M&A Pipeline Still Remaining Robust?
The company announced that it had almost doubled its commissions businesses, and that its focus on expense management continues, a statement which sounded a bit controversial as at the same time “the M&A pipeline remains robust with several transactions in various stages of negotiations."
The company’s CEO, Glenn Stevens, has outlined that there is enough room to cut expenses to reach the firm’s target without hammering the efforts of expanding the company’s business at a relatively good time for M&A. He stated that the current environment is not a result of secular changes, but cyclical changes and “ultimately currency ranges do break out."
According to Mr. Stevens, the firm is “positioned from benefitting from a correction back to normal volatility levels," however, he highlighted that a broader product mix is incoming as the company relies more on multitude products and less on pure currency play. Non-FX products volumes levels have been rising, with diversification with CFDs and single stock CFDs permitting to look for ways to deliver desired products to multiple geographies.
The ratio between direct and non-direct revenues at GAIN Capital has been stated at around 50:50, meaning that half of the company’s revenues now come from white label partners.
Shares of GAIN Capital traded lower by 9.8% in after-market hours as investors seem to be materially worried about the expense side of the company's business.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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