GAIN Capital’s FX Volume Continues Downturn in July 2019

GAIN Capital Holdings, Inc. (NYSE: GCAP) has just reported its aggregated trading volumes for July 2019. The group’s most recent retail volumes took a step back during the month, compared to ending June on a more positive note.

In particular, GAIN Capital’s retail clients transacted a total of $135.8 billion in July 2019, retreating 1.4 percent month-over-month from $137.7 billion in June 2019. Over a yearly timetable, GAIN’s latest retail OTC volume was sharply lower by over 25.5 percent from $182.3 billion in July 2018.

The group’s average daily volumes (ADVs) came in at $5.9 billion in July 2019, down 14.5 percent month-over-month from $6.9 billion per day in June 2019. This figure was also lower by 29 percent on a yearly basis.

Meanwhile, active accounts in the retail segment totaled 117,582 in July 2019, which slightly decreased on a monthly basis from 118,320 accounts in June 2019. This reading is lower relative to 130,983 in July 2018, shedding over ten percent year-over-year.

Weak financial results

Finally, futures trading dropped last month to 640,399 contracts, corresponding to a loss of 30 percent from a year earlier when weighed against 491,287 contracts in 2018.

Last month, Gain Capital appointed reported its financial results for the second quarter of 2019 saw a year-on-year decrease. GAIN’s net revenues under the US GAAP for Q2 2019 came in at $75.5 million, constituting a fall of ten percent compared to $84.2 reported back in the April-June quarter of 2018. Over a quarterly basis, however, the company revenue nearly doubled from $38.4 million in the first quarter.

In terms of Gain Capital’s bottom line, the quarterly net income from continuing operations was only $0.9 million, or $0.02 per share, compared to $6.8 million in the year before and a net loss of $28.4 million in the Q1 2019.