GAIN Capital’s Retail and Institutional Monthly Metrics down MoM

Institutional volumes saw the biggest MoM drop of almost 7%, while retail volumes represented a 6.1% slump from June 2015.

GAIN Capital Holdings, Inc. (NYSE: GCAP) has published its monthly metrics for July 2015. Both the retail and institutional trading volumes were down from the month of June 2015, although increased on an annual basis due to the integration of the metrics from its acquisition, City Index, helping to boost volumes.

Indeed, the broker warned in July that revenue capture remained a challenge, with its Q2 results coming in at the lower historical range and its stock price down 30% since its June highs.

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Delving into the figures, retail OTC trading volume reached $352.7 billion, a decline of 6.1% MoM from June 2015, and a 92.5% YoY increase from July 2014. Average daily retail OTC trading reached a volume of $15.3 billion, a decrease of 10.2% MoM from June 2015 and an increase of 92.5% from July 2014. Active retail OTC accounts were marginally lower from June 2015, coming in at 148,678, although saw a modest increase of 15.8% YoY from July 2014.

The institutional side of the business continued to underperform, with an underwhelming 7.5% YoY increase in GTX trading volumes, which came in at $390.1 billion for the month of July 2015, a decrease of 6.9% from June 2015. Average daily GTX volume came in at $17.0 billion, a decrease of 10.9% MoM from a stronger June 2015 and an increase of 7.5% from July 2014.

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In terms of futures contracts, the figure came in at 666,002, a decrease of 4.3% MoM from June 2015 and an increase of 10.7% YoY from July 2014. Average daily futures contracts were reported at 30,273, a decrease of 4.3% from June 2015 and an increase of 15.8% from July 2014.

The data does not include GAIN’s total institutional trading volume, and we continue to wait for the firm’s comment on July’s metrics..

However, commenting on the recent Q2 results, CEO Glenn Stevens cited that the firm’s falling revenue capture could be attributed to “unusually adverse trading conditions across indices, which resulted in approximately $20 million lower than normal net revenue for the quarter.” However, Stevens cited that retail forex revenue capture was solid, thus showing a rebound from an area of weakness in Q1, which we see reflected in July’s trading metrics.

GAIN monthly volumes

*July 2015’s institutional metric represents GTX Trading Volume rather than the Total Institutional Trading Volume

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