ITG Reports Q3 2015 Earnings, SEC Fine Saps Income

ITG reported a GAAP net income of $2.7 million in Q3 2015, which represents a -76.3% drop YoY from $11.4

ITG (NYSE:ITG), an independent execution broker and research provider, has reported its financial metrics for Q3 2015, which were weighted down heavily by a fine by the US Securities and Exchange Commission (SEC).

Back in July, ITG as well as its affiliate AlterNet Securities agreed to collectively pay $20.3 million to settle charges over the breach of dark pool trading confidentiality with the SEC.

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In terms of the Q3 2015 metrics, ITG reported a GAAP net income of $2.7 million, which represents a -76.3% drop YoY from $11.4 million in Q3 2014. The group also experienced a similar decline across its net income per diluted share, which yielded $0.08 in Q3 2015, compared with $0.32 in Q3 2014.

In terms of revenues, ITG secured a revenue of $120.4 million in Q3 2015, representing a -10.7% YoY drop off from $134.8 million in revenues observed during Q3 2014. Furthermore, expenses at ITG also declined during Q3 2015, retreating to just $117.2 million from $122.7 million during Q3 2014, or -4.5% YoY.

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Trading Volumes in Focus

Despite ITG’s regulatory repercussions, average daily trading volume across its US operations was 152 million shares during Q3 2015, which managed to grow 3.4% YoY from 147 million shares in Q3 2014. The group’s POSIT average daily US volume was also reported at 67 million shares during Q3 2015, however this figure constituted a decline of -6.9% YoY from 72 million shares Q3 2014.

ITG’s European business was also uneven during Q3 2015, with its average daily value traded in POSIT coming in at $1.2 billion, growing 20.0% YoY from just $1.0 billion in Q3 2014.

Last month, ITG made headlines after it launched Market Compass, a mobile application based on predictive modeling techniques for traders. ITG’s Market Compass was designed to help streamline a variety of tasks for traders and market participants, including market openings, advanced modeling methodologies, and sector-specific forecasting. The offering was geared primarily for institutional traders, with a specific emphasis on equities and foreign exchange (FX) trading.

ITG’s share prices have experienced a steady retreat off of a 52-week high of $32.07 in April. The fallout of a fine by the SEC helped contribute to a large sustained sell off in shares all the way down to a 52-week low of $12.63 during September. At the time of writing however, shares of ITG have settled at $17.03 ahead of the US open Thursday.

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