GAIN Capital’s institutional arm GTX has posted its final results for 2016. The unit includes a foreign exchange trading Electronic Communications Network (ECN), a Swap Execution Facility (SEF) and a swap dealer (SD).
As with other companies from the industry, trading volumes at GTX in December have been materially impacted by seasonality. During the typically slow final month of the year, the institutional arm of GAIN Capital marked a decline of 14 percent on a monthly basis to a total of $272 billion. The figure was higher by 32 percent year-on-year.
The Average Daily Volume (ADV) metric stood at $12.4 billion, which represented a decline of 14 percent month-on-month and an increase of 32 percent year-on-year.
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Looking at the details, in the final month of 2016, the company registered a solid 36 percent year-on-year increase in trading volumes on its ECN and SEF facilities, marking $202.1 billion. The figure was higher by 36 percent when compared to last year and lower by 11 percent when compared to November.
GAIN Capital’s Swap Dealer facility for foreign exchange registered transactions totaling $70 billion in December 2016. The figure was lower by 21 percent when compared to November and higher by 20 percent when compared to December 2015.
Recapping the year, GAIN Capital’s GTX unit has managed to surpass 2015’s trading volumes numbers by 11 percent. The ECN and SEF facilities improved by 17 percent and rose to $2.18 trillion, while the swap dealer facility’s volumes declined by 3 percent to $779 billion.
Looking ahead, the company’s institutional arm is in for a year full of competition. The company could see a material boost in trading volumes should the Trump administration decides to commit to repealing the Dodd-Frank Act.