GAIN Capital's Retail Trading Activity Jumps in July

Trading volumes rise in July at GAIN Capital. The leading global provider of FX derivatives saw total Retail volumes rise

Listed multi-asset broker dealer, GAIN Capital, has reported its trading metrics for the month of July. Activity at the brokerage firm took a surprise U-turn heading into the green zone with average daily volumes in its retail arm trading at $8 billion, a 29.3% increase from figures reported a year earlier. At the same time, the multi-asset provider saw daily trading volume decrease in its institutional arm  at $17.2 billion, with a drop of 24.9% from June 2014, however it saw an increase of 12.2% from July 2013. The figures show that despite the difficult trading conditions, the large financial services firm has managed to overcome the challenges through its diversified offerings.

GAIN Capital defied the norm for the bleak summer months with positive trading volumes in its retail trading unit. The firm saw positive figures across the board both in its OTC and exchange traded divisions. Overall volumes and metrics are showing a sharp rise year-on-year, thus indicating the firm’s acquisitions in the over-the-counter-market and listed derivatives fields having paid off.

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GAIN_July_Volume_Metrics
GAIN July Volume Metrics

Retail Metrics

  • Retail OTC trading volume of $183.2 billion, an increase of 10.3% from June 2014 and an increase of 29.3% from July 2013.
  • Average daily retail OTC trading volume of $8.0 billion, an increase of 0.7% from June 2014 and an increase of 29.3% from July 2013.
  • Active retail OTC accounts [Retail OTC accounts that executed a transaction during the last 12 months] of 93,374, a decrease of 0.9% from June 2014 and an increase of 44.1% from July 2013.
  • Futures contracts of 601,406, an increase of 16.0% from June 2014 and an increase of 38.6% from July 2013.
  • Average daily futures contracts of 26,148, an increase of 5.9% from June 2014 and an increase of 38.6% from July 2013.
  • Total funded accounts [Retail accounts that maintained a cash balance] of 131,040, an increase of 0.2% from June 2014 and an increase of 37.9% from July 2013.

The firm saw a reduction in monthly volumes in its instituional segment, as well as GAIN GTX, however on an annual basis the firm has fared well. The summer trading months of July and August are relatively illiquid as traders take annual leave.

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Institutional Metrics

  • Total institutional trading volume of $394.9 billion, a decrease of 17.7% from June 2014 and an increase of 12.2% from July 2013.
  • Average daily institutional volume of $17.2 billion, a decrease of 24.9% from June 2014 and an increase of 12.2% from July 2013.
  • GTX trading volume of $362.8 billion, a decrease of 18.7% from June 2014 and an increase of 3.1% from July 2013.
  • Average daily GTX volume of $15.8 billion, a decrease of 25.7% from June 2014 and an increase of 3.1% from July 2013.

The firm’s share price closed today at 6.65, up by 0.16 cents or 2.47%.

The global provider caters to the needs of international clients through its various local regulated entities. In a recent investor presentation, the firm stated that it has a “geographically diversified business; multi-language offering targeting high growth markets in Middle East and Asia-Pacific.”

GAIN has seen an uptrend in its overall business as reported in its quarterly earnings, like its rival FXCM, the firm has been involved in a number of high-level mergers and acquisitions.

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