KCG Sees Its Q3 2015 Volumes Score Double-Digit Growth

KCG Holdings, Inc. (NYSE: KCG) has reported its financial metrics for Q3 2015, with revenues firmly solidifying themselves in an upward trend, according to a KCG statement.

Recently, KCG Holdings (NYSE: KCG) released its trading volumes for the month ending September 2015. Its figures were much weaker across the board, with its average daily US Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term market making coming in at just $30.3 billion traded, having fallen by -14.9% MoM from $35.6 billion in August 2015.

During Q3 2015, KCG saw an average daily dollar volume of $31.5 billion, which represents a jump of 12.9% QoQ from $27.9 in Q2 2015. Across a yearly timeframe, KCG’s latest figures have also risen, albeit by a factor of 27.5% YoY from $24.7 billion in Q3 2014.

In terms of Quantitative Trading Quantitative Trading Quantitative trading is defined as a type of market strategy that relies on mathematical and statistical models to both identify and execute opportunities. Also known as quant trading, this strategy uses models that are driven by quantitative analysis, as well as advanced research and measurement to strip complex patterns of behavior into numerical values.Of note, quantitative trading eschews qualitative analysis, which evaluates opportunities based on subjective factors such as management exper Quantitative trading is defined as a type of market strategy that relies on mathematical and statistical models to both identify and execute opportunities. Also known as quant trading, this strategy uses models that are driven by quantitative analysis, as well as advanced research and measurement to strip complex patterns of behavior into numerical values.Of note, quantitative trading eschews qualitative analysis, which evaluates opportunities based on subjective factors such as management exper Read this Term volumes however, KCG saw an average of 4.0 million trades in Q3 2015, up 12.7% QoQ from just 3.55 million trades in Q2 2015. In particular, NYSE and NASDAQ shares traded rose to 985,000 in Q3 2015, rising 11.3% QoQ from 885,000 in Q2 2015.

Moreover, KCG’s Q3 2015 GAAP revenues came in at $377.0 million, vs. just $261.9 million in Q2 2015, or 42.8% QoQ. This figure was slightly less magnified against its 2014 equivalent however, justifying a surge of 38.4% YoY from $272.3 million in Q3 2014.

According to Daniel Coleman, Chief Executive Officer of KCG, in a recent statement on the Q3 metrics, "KCG generated strong financial results in the third quarter of 2015 amid an upturn in market conditions in the U.S. equity market. The performance was driven by KCG market making in U.S. equities as well as agency-based trading on behalf of institutional clients.”

Additionally, “The results for the quarter were lowered due to writedowns for the consolidation of current real estate as well as expenses attributable to the corporate relocation. Notwithstanding, we produced significant growth in non-GAAP pre-tax income while continuing to reduce our total shares outstanding," he added.

At the time of writing, KCG (NYSE:KCG) share prices are sitting in negative territory for the week, settling at $12.44 ahead of the US open. KCG (NYSE:KCG) share prices presently are situated below a 52-week high of $13.75 and carries despite a low P/E of just 5.71.