Protractions Continue With GAIN Capital's 9.6% Retail Volume Decrease During November
GAIN Capital has today announced its monthly metrics for November, in which the company's institutional volumes increased by 47.3%, and
Today, GAIN Capital released its monthly metrics for November 2013, which display a downturn across the board in total trading volumes compared with October 2013.
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The company completed the month of November with a retail OTC trading volume of $168.3 billion, which although is still 59% ahead of the same period during last year’s unusually low trading activity, represents a decrease of 9.6% when compared with last month.
Volume Slowdown Heads Into Third Month
Overall, the entire industry, with only a few exceptions, has experienced something of a complete reversal of fortunes which were bestowed upon a majority of retail FX firms worldwide during the first six months of the year, in which a protraction began to emerge, and as November’s volume releases come to publication, appears to be continuing.
Whereas GAIN Capital’s retail FX division generated a significant increase in revenues during October, the company’s institutional business followed the downward trend experienced by many other firms.
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Institutional Division Increases Volume By 47.3%
In November, however, it was the company’s institutional division which outperformed last month’s figures, going some way toward restoring October’s low average daily volumes, with November’s total institutional trading volumes standing at $428.6 billion, an increase of 47.3% from October 2013, and an increase of 153.5% from November 2012.
Average daily institutional volume of $20.4 billion, an increase of 61.3% from October 2013, and an increase of 165.6% from October 2012.
With GAIN Capital’s retail FX division’s average daily retail OTC trading volume for November this year standing at $8.0 billion, the company has experienced a decrease of 1.0% from last month and an increase of 66.9% from the average daily volumes in November 2012.
Futures Daily Average Revenue Trades (DARTS) amounted to 15,055, which is a decrease of 4.9% from October 2013 and an increase of 10.8% from November 2012, and the company completed the month of November with a total of 133,096 funded accounts, which despite the decrease in volumes, represents an increase of 0.5% from October 2013, and an increase of 63.3% from November 2012.
Comparative to GAIN Capital’s volumes for October, a complete U-turn occurred in November, with the institutional division having recovered lost ground, and the retail business having taken the direction which is congruent to that of many industry participants worldwide.
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Wow thr y/y numbers are astounding.. w/no notation one would have to believe the shakeup in management (new global head of trading ) is paying off.
w/ regard to gains recent convertible.. was there any reason for the generous conversion terms.. is it general practice to set the conversion inside the issuing firms 52 wk hi?
mot of the stable firms that have converts generally look to price well above the current trading price.. unless they are using the convert as a quick exit for the GFT crowd..
Worth adding is that the instiutional gains appear to be a surprise since they played down much more growth taking place there until Q1 2014.
on the convert.. from a corporate governance issue seems to be imprudent.. sends a message that the management, possibly by dint of their own historical ineptitude, has no confidence in the firms ability to post gains.. evidenced by the poor metrics. I would be wary of the institutional growth, coming off a zero base ( GTX only up for ~2yrs) percentage gains are misleading. The space continues to get crowded and the pickup of the PFG team may not be the golden egg GS believes. I would imagine lots of old voice relationships that can walk out the door at… Read more »
not to beat a dead horse.. but is there a way to find out who bought the GCAP convertibles.. would be interesting to see if insiders dumped equity and bought the converts.. and the timing of those sales.. with stock back at 7… seems like a bit of a pump n dump