ITG Sees Muted Change in Volumes during October, Revenues Decline in Q3

Volumes at ITG took a slight dip though held onto recent gains during October.

ITG (NYSE:ITG), an independent execution broker and financial technology provider, has reported its latest tranche of statistics, this time corresponding to the month of October 2016. Its latest US trading volumes were characterized by a general downturn in figures relative to the month prior, according to a recent ITG report.

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ITG’s total trading volumes had previously managed to see a slight boost, helped by volatility in September and heightened trading across markets. During October 2016 however, ITG reported its total volumes at 2.63 billion shares, compared with just 2.69 billion in September 2016 or -2.2% MoM.

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This also was reflective of an average daily volume (ADV) of 125.3 million during October 2016, relative to 128.3 million in ADV during September 2016 – this was also indicative of a change of -2.3% MoM, given a differential in trading days from 22 in September to 21 in October. However, year-to-date, the ADV was lower, constituting an average of 134.8 million, or -7.4%.

During October 2015, ITG’s average daily trading commissions across its Canadian, European, and Asia-Pacific (APAC) businesses were also up approximately 14.0% in US dollar terms on a combined basis, relative to Q3 2016.

Q3 Overview

ITG also reported its Q3 financial results, which saw a GAAP net loss of $23.9 million, or $0.73 per share. This compared to a GAAP net income of $2.7 million of in Q3 2015, and $0.08 per share. One of the primary drivers of these results was the establishment of a reserve for the potential settlement of an SEC inquiry into activity involving pre-release American Depositary Receipts (ADRs) – ITG also previously paid a substantial fine.

In addition, ITG yielded revenues of $104.2 million in Q3 2016, which were lower by a factor of -13.5% YoY from $120.4 million in Q3 2015.

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