GAIN Capital’s Retail Volumes Continue to Shine in June

Retail OTC volumes rose for the second consecutive month with futures trading also making healthy gains.

Multi-asset brokerage GAIN Capital has just disclosed its latest trading statistics for June 2017. The latest figures corroborate an industry trend of retail brokerages securing a monthly increase in trading activity.

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In particular, GAIN Capital’s retail clients transacted a total of $241.8 billion in June 2017, climbing from 10.2 percent month-over-month from $219.5 billion in May 2017. This is the second double-digit monthly increase in a row, following a bounce off a previous yearly low recorded in April 2017.

Over a yearly timetable, GAIN’s latest retail OTC volume was also higher by a factor of 4.4 percent from $231.7 billion in June 2016. This rise was attributed to isolated pockets of volatility surrounding the recent Federal Reserve’s decision to hike interest rates again in June. GAIN’s average daily volumes (ADVs) also came in at $11.0 billion in June 2017, up 15.8 percent month-over-month from $9.5 billion per day in May 2017, and 4.8 percent higher on a yearly basis.

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Institutional volumes pullback

GTX, the electronic communications network and institutional segment of GAIN Capital’s business, saw its upward momentum snapped in June 2017. The group reported a reading of $238.1 billion for the month, which correlates to a decline of 3.7 percent month-over-month from $247.2 billion in May 2017. This figure is however higher by 12.2 percent higher year-over-year, relative to $212.3 billion in June 2016.

GAIN Capital’s swap dealer facility also registered an abrupt decline in June 2017 with transactions plunging 46.1 percent month-over-month to $32.0 billion, compared to $59.4 billion in May 2017.

Meanwhile, futures trading managed to climb to a total of 582,598 contracts, a jump of 10.3 percent month-over-month when compared to 528,199 contracts in the month prior. The aforementioned Fed activity helped play a key role in futures trading during the month, with the rest of the month being relatively devoid of market drivers with the summer lull setting in across financial markets.

Active accounts in the retail segment totaled 134,120 in June 2017, which is marginally lower on a yearly basis from 135,369 accounts in June 2016. Over this period, futures trading accounts saw a more pronounced decline to 24,482 in June 2017, retreating 19.9 percent lower when measured against June 2016.

The latest results continue to see improvements during Q2 2017 in the retail brokerage space, as FX volatility looks to be indeed higher relative to Q1 2017.

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