GAIN Capital’s Retail and Institutional Metrics Rebound in September

American brokerage GAIN Capital Holdings, Inc. (NYSE: GCAP) has released its metrics for the month ending September 2016, showing a strong recovery in trading volumes after the sharp slump it suffered in August.

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During September 2016 GAIN Capital recorded over the counter (OTC) trading volumes of $207.8 billion, an increase of 8.3% from August but still a decrease of 40.3% year over year compared with September 2015. Taking into account the comparable number of working days, we see that the OTC average daily volume in September of $9.4 billion is an impressive increase of 13.2% from August 2016.

Over the institutional side of its business, GAIN Capital recorded ECN volume of $186.3 billion during September 2016, an increase of 24.1% from August and an increase of 28.7% YoY from September 2015. In daily terms, the ECN average daily volume was $8.5 billion in September, an increase of 29.8% from August 2016 and 28.7% from September 2015.

"Q3 2016 was marked by lower Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and narrow average true ranges for many products, which resulted in lower customer engagement and a decrease of GAIN's quarterly retail revenue per million of nearly 30% below our 1H 2016 levels," remarked Glenn Stevens, Chief Executive Officer. "The decline in volatility and customer engagement impacted much of the retail industry with GAIN and its competitors showing significant declines in quarterly volumes.

However, we have seen a significant increase in volatility and engagement in early October and expect this to continue over the course of Q4 and into FY 2017 as a result of 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 concerns, the US presidential election and continued uncertainty relating to global interest rates," concluded Mr. Stevens.