KCG Revenues from Global Execution Services Including Hotspot FX -1.5% in Q2
- At the same time volumes in the company's ECN foreign exchange business have dropped by 18.6%, averaging $26.2 billion daily, total revenues have shed the same 18%, as stock market activity declined in Q2.
KCG Holdings, the company behind one of the leading ECNs, KCG Hotspot, has announced its second quarter earnings. The global Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term services part of its business, including KCG Hotspot, has reported revenues dropping by 1.5% when compared to the first quarter of 2014. Average daily volumes at KCG's ECN foreign exchange offering have dropped by 18.6% when compared to the first quarter, averaging $26.2 billion daily.
Throughout the second quarter of 2014, the pre-tax income generated by the segment totaled $0.7 million, including a debt interest charge of $1.8 million and a workforce reduction compensation totaling $1.9 million. Should those items be excluded, the net pre-tax income would total $2.6 million in the second quarter which is lower than first quarter's $4.6 million.
Overall, the company has posted revenues dropping by 18% when compared to the numbers posted during the previous quarter, coming out at $314 million. Net income per share totaled $0.08, in GAAP pre-tax terms, totaling $14.5 million - lower by almost 75% when compared to the first quarter. The figure included included $3.1 million in compensation for workforce reduction, a $2.0 million write down of capitalized debt costs related to the principal repayment of debt, and a lease loss accrual of $1.9 million.
The announcement highlighted that the main reason for the decline in revenues is the drop in trading activity on the US equity market - lower by 13% in consolidated terms while the average 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 of the S&P 500 was merely 9.2 during the quarter.
KCG Holdings, the company behind one of the leading ECNs, KCG Hotspot, has announced its second quarter earnings. The global Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term services part of its business, including KCG Hotspot, has reported revenues dropping by 1.5% when compared to the first quarter of 2014. Average daily volumes at KCG's ECN foreign exchange offering have dropped by 18.6% when compared to the first quarter, averaging $26.2 billion daily.
Throughout the second quarter of 2014, the pre-tax income generated by the segment totaled $0.7 million, including a debt interest charge of $1.8 million and a workforce reduction compensation totaling $1.9 million. Should those items be excluded, the net pre-tax income would total $2.6 million in the second quarter which is lower than first quarter's $4.6 million.
Overall, the company has posted revenues dropping by 18% when compared to the numbers posted during the previous quarter, coming out at $314 million. Net income per share totaled $0.08, in GAAP pre-tax terms, totaling $14.5 million - lower by almost 75% when compared to the first quarter. The figure included included $3.1 million in compensation for workforce reduction, a $2.0 million write down of capitalized debt costs related to the principal repayment of debt, and a lease loss accrual of $1.9 million.
The announcement highlighted that the main reason for the decline in revenues is the drop in trading activity on the US equity market - lower by 13% in consolidated terms while the average 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 of the S&P 500 was merely 9.2 during the quarter.