FX Volumes at GAIN Capital Back to Pre-Covid Levels

Retail FX volumes at GAIN Capital Holdings, Inc. (NYSE: GCAP) had further dropped in May to hit its pre-pandemic levels, in with the rest of the industry, including institutional platforms and following an influence of volatility south of the border.

In particular, GAIN Capital’s retail clients transacted a total of $179 billion in May 2020, down five percent month-over-month from $188 in April and more than halved from $388 billion in March 2020. Over a yearly timetable, GAIN’s latest retail OTC volume was virtually unchanged from $180 billion in May 2019.

The group’s average daily volumes (ADVs) also dropped last month to $8.1 billion from 8,6 percent the month prior and $17.7 billion per day in March 2020. This figure, however, was higher by nine percent on a yearly basis.

The bulk of advance in GAIN’s turnover this year could be easily attributed to solid volumes seen in March, nearly 50 percent of the Q1 totals. Out of this figure, the March metrics were up 95 percent month-over-month from $199 billion in February and more than double the daily average reported year-to-date.

GAIN Capital votes  in favour of FCStone acquisition

Meanwhile, three-month trailing active accounts in the OTC retail segment totaled 96,774 by the end of May, up three percent on a monthly basis from 93,773 accounts in April 2020. GAIN’s retail account swelled by over 20 percent when weighed against the same month a year ago.

Finally, futures trading dropped further in April to 543,683 contracts, corresponding to a loss of 31 percent from 2019, and was also lower by four percent than it was in April.

Activity at major institutional ECNs and retail platform has been consolidating over the past two months as intense chaos triggered by Covid-19 lost some steam.

GAIN Capital made the headline last week after its shareholders have overwhelmingly approved their $236 million combination deal with INTL FCStone.

More than 71 percent of votes cast Friday by the FX broker’s shareholders were in favour of the transaction, representing 86 percent of the total in attendance, well above the required two-thirds threshold. Nearly 83.2 percent of all GAIN’s shareholders attended the special meeting to decide on the merger proposal.

Sean O’Connor, CEO of INTL FCStone, will lead the new combined firm, while Glenn Stevens, who has been GAIN’s CEO for over 20 years, will continue to lead the former business within INTL FCStone.

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