GAIN Capital’s GTX Closes a Solid 2016 with Seasonally Weak December

GAIN Capital’s institutional arm GTX has posted its final results for 2016. The unit includes a foreign exchange trading Electronic Communications Network (ECN) Electronic Communications Network (ECN) Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Electronic Communications Network or ECNs are execution venues which are providing the infrastructure for matching buyers with sellers. Electronic trading is traditionally used in OTC products and outside of exchanges. An ECN normally functions as an electronic system that disseminates orders entered by market makers to third parties. In doing so, an ECN permits the orders to be executed against in whole or in part. The most common products that are traded on ECNs are stocks and currencies, maki Read this Term), a Swap Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term Facility (SEF) and a swap dealer (SD).

As with other companies from the industry, trading volumes at GTX in December have been materially impacted by seasonality. During the typically slow final month of the year, the institutional arm of GAIN Capital marked a decline of 14 percent on a monthly basis to a total of $272 billion. The figure was higher by 32 percent year-on-year.

The Average Daily Volume (ADV) metric stood at $12.4 billion, which represented a decline of 14 percent month-on-month and an increase of 32 percent year-on-year.

Looking at the details, in the final month of 2016, the company registered a solid 36 percent year-on-year increase in trading volumes on its ECN and SEF facilities, marking $202.1 billion. The figure was higher by 36 percent when compared to last year and lower by 11 percent when compared to November.

GAIN Capital’s Swap Dealer facility for foreign exchange registered transactions totaling $70 billion in December 2016. The figure was lower by 21 percent when compared to November and higher by 20 percent when compared to December 2015.

Recapping the year, GAIN Capital’s GTX unit has managed to surpass 2015’s trading volumes numbers by 11 percent. The ECN and SEF facilities improved by 17 percent and rose to $2.18 trillion, while the swap dealer facility’s volumes declined by 3 percent to $779 billion.

Looking ahead, the company’s institutional arm is in for a year full of competition. The company could see a material boost in trading volumes should the Trump administration decides to commit to repealing the Dodd-Frank Act.