GAIN Capital’s Retail Volumes Pointed Lower in October

A lack of fireworks across markets helped contribute to eroding volumes in October.

Foreign exchange and CFDs brokerage GAIN Capital has just reported its aggregated trading volumes for the month of October 2017. The group’s most recent retail volumes took a step back during the month, continuing a consecutive string of declines from August this year.

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GAIN’s retail volumes performance seems somewhat inverted this year, as it typically sees a recovery off of August lows, steadily building up in the fall with volatility more prevalent. 2017 has been the opposite scenario, with retail volumes retreating off of a high in August.

Still, there were several events that helped drive currency markets in October. This included the ECB’s decision, albeit an underwhelming one, which triggered a selloff. Additionally, the focus was once again on the US Federal Reserve, with Trump’s nomination of a new chair.

In particular, GAIN Capital’s retail clients transacted a total of $192.5 billion in October 2017, retreating 5.0 percent month-over-month from $202.6 billion in September 2017. The latest reading opens up a larger loss off of last month’s volumes, having been pointed firmly lower since an unusually active August.

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Over a yearly timetable, GAIN’s latest retail OTC volume was marginally higher, albeit by a factor of less than 1.0 percent year-over-year from $190.9 billion in October 2016. Of note, October 2017 featured a total of 22 trading days, relative to 20 trading days back in September 2017.

The group’s average daily volumes (ADVs) came in at $8.8 billion in October 2017, down 8.3 percent month-over-month from $9.6 billion per day in September 2017, though down 3.2 percent on a yearly basis.

Meanwhile, active accounts in the retail segment totaled 133,599 in October 2017, which is marginally lower on a monthly basis from 133,813 accounts in September 2017. This reading is higher relative to October 2016, gaining 4.1 percent year-over-year.

Institutional volumes drop

GTX, the electronic communications network and institutional segment of GAIN Capital’s business, saw its volumes once again decline in October 2017. The group reported a reading of $250.0 billion in October, declining on a monthly basis from $279.0 billion in September 2017 or -10.4 percent. This figure is however higher by 36.9 percent year-over-year, relative to $182.6 billion in October 2016.

GAIN Capital’s swap dealer facility registered a growth in October 2017 with transactions rebounding 15.4 percent month-over-month to $72.5 billion, compared to $62.8 billion in September 2017. The rebound occurred after falling over 40 percent in this segment last month.

Meanwhile, futures trading registered a climb to 524,625 contracts, corresponding to a growth of 9.7 percent month-over-month when weighed against 478,196 contracts in the month prior.

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