GKFX UK Narrows 2021 Losses despite 55% Trading Revenue Drop
- The company generated a short-term non-trading revenue of £4.1 million.
- Its pre-tax losses for the year came in at £2.24 million.
GKFX Financial Services Limited, the UK-based entity of Global Kapital Group, published its financials for the year 2021, ending on 31 December. Though the annual turnover of the broker from its trading business declined, it significantly narrowed its losses.
According to the Companies House filing, the broker generated £1.18 million in revenue from its FCA-regulated United Kingdom business. The figure dropped by more than 55 percent as it brought in £2.66 million in revenue in the previous financial year.
Its gross trading profits also declined to £509,798 from the previous year’s £1.89 million.
The company cited market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and global macroeconomic problems behind the downturn in its core business performance.
“Trading revenues for the year were generated predominantly through volume rebates with a counterparty that is related to GKFX by common ownership. The risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term strategy is based on highly automated flow management which dynamically hedges client exposures and risk,” the filing stated.
“The level of such revenues is influenced by the volume of trades executed on behalf of the Company’s clients [and its] success is driven by the variety of financial products it offers and the quality of services provided to customers.”
Short-Term Non-Trading Income
Additionally, the UK company generated a non-trading revenue of £4.1 million by providing short-term services like procuring outsourced services and supplies to its counterpart.
Despite a higher administrative expense, the non-trading revenue helped to narrow the operating losses to £2.63 million, compared to £3.29 million in 2020. The pre-tax losses of the company came in at £2.24 million last year, narrowing down from £2.88 million.
“As a result of a number of strategic changes, commencing in 2019 and continuing through 2021, trading revenues and related expenses have continued to reduce significantly from historic levels,” the filing added.
GKFX Financial Services Limited, the UK-based entity of Global Kapital Group, published its financials for the year 2021, ending on 31 December. Though the annual turnover of the broker from its trading business declined, it significantly narrowed its losses.
According to the Companies House filing, the broker generated £1.18 million in revenue from its FCA-regulated United Kingdom business. The figure dropped by more than 55 percent as it brought in £2.66 million in revenue in the previous financial year.
Its gross trading profits also declined to £509,798 from the previous year’s £1.89 million.
The company cited market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and global macroeconomic problems behind the downturn in its core business performance.
“Trading revenues for the year were generated predominantly through volume rebates with a counterparty that is related to GKFX by common ownership. The risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term strategy is based on highly automated flow management which dynamically hedges client exposures and risk,” the filing stated.
“The level of such revenues is influenced by the volume of trades executed on behalf of the Company’s clients [and its] success is driven by the variety of financial products it offers and the quality of services provided to customers.”
Short-Term Non-Trading Income
Additionally, the UK company generated a non-trading revenue of £4.1 million by providing short-term services like procuring outsourced services and supplies to its counterpart.
Despite a higher administrative expense, the non-trading revenue helped to narrow the operating losses to £2.63 million, compared to £3.29 million in 2020. The pre-tax losses of the company came in at £2.24 million last year, narrowing down from £2.88 million.
“As a result of a number of strategic changes, commencing in 2019 and continuing through 2021, trading revenues and related expenses have continued to reduce significantly from historic levels,” the filing added.