GAIN Capital: Not Adversely Affected from Brexit Market Volatility

Online FX and multi-asset brokerage operator GAIN Capital Holdings, Inc. (NYSE: GCAP) today released an official statement regarding the European Union referendum results, as the markets opened lower in the US to news of the UK voting to leave the EU, and following a global selloff earlier in the session.

Many currencies made record one-day moves, as June 24^th 2016 will be remembered as a historic day not just for the UK but for financial markets as well, considering the volatility doesn’t get worse from here as future uncertainty lingers over the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term decision.

GAIN not adversely affected today

In an effort to update its clients on its financial position following the extreme market volatility today, as the company holds risk in some of its market-making businesses, the company noted:

“Gain Capital's financial position has not been adversely affected as a result of today's market volatility following the UK's decision to leave the EU. Heightened volatility around the referendum was anticipated and we took proactive steps to protect our clients and the firm, which included increasing client margin requirements in anticipation of significant market moves.

The Company has robust Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term systems and processes in place and is well equipped to deal with increased trading activity and market turbulence as a result of this outcome.”

The news follows a very dramatic day for currency markets, and financial markets across Asia, Europe, and now in the U.S, where trillions of dollars in market capitalization were wiped off indices, and currencies such as the British pound made historic moves with some pairs moving several thousands of pips.