GAIN Capital GTX Posts Flat Volumes in November amid Compressed FX Volumes

FX range trading is compressing not only volatility, but trading volumes too.

GAIN Capital’s electronic communications network GTX had a flat month in November. The firm’s institutional arm posted a total average daily volume of $14.6 billion last month. The figure was lower by 1 percent when compared to the previous month and higher by 2 percent when compared to a year ago.

Total monthly volumes amounted to $320.5 billion. The number that is higher by 2 percent year-on-year and lower by 1 percent month-on-month.

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While GAIN Capital’s ECN and SEF volumes increased by 7 percent when compared to October, the company’s swap dealer platform underperformed, posting a 27 percent decline in transactions. On a yearly basis, ECN and SEF volumes increased by 18 percent, as the swap dealer platform underperformed by 40 percent.

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Compressed volatility across major FX pairs was the primary driver for the slowdown in November for GAIN Capital.

Ongoing tax reform deliberations are holding the US dollar in tight ranges, while increasingly bullish stock markets are leading to an overall decline in volatility. Venues, where clients are more interested in trading emerging markets currencies, could have better results as ongoing tensions in the Middle and the Far East are causing large moves across the EM FX block.

December volatility is hinging on the performance of the dollar and the conclusion of tax reform deliberations. While early on Thursday Senate Republicans were confident on a vote before the end of the day, a delay on the vote has been caused by deficit hawks, led by Bob Corker.

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