GAIN Capital’s GTX Sees Volumes Decline in December

Gain Capital’s institutional arm GTX released its volume figures for December 2017, illustrating a significant decline from the previous month. GTX is a provider of institutional FX 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 methods, enabled by its 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), Swap Execution Facility (SEF), and Voice Agency Desk.

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GTX’s monthly volume in December totaled roughly $246.7 billion, down 23% from November. The decline is composed of GAIN’s ECN and SEF volumes falling 19%, while the Swap Dealer platform endured a steeper dive of 42%. Meanwhile, Average Daily Volume (ADV) in December 2017 was posted at approximately $12.34 billion, which is 15% lower than November, but unchanged from December of 2016.

The numbers illustrate a decline relative to December 2016 levels as well, falling a total of 9%, despite gains of 7% in ECN and SEF volumes. This is directly attributed to a substantial dip of 56% in Swap Dealer volume relative to the same month of the previous year. Concerns over a developing pattern are likely premature, although it is noteworthy that this is the third consecutive month, in which GTX has posted flat volume levels. Following a downward tick in volume in October, the company posted numbers that solidify this trend over the past few months.

While the numbers initially appear dim, the bigger picture appears far more positive. Relative to 2016, volume levels are actually on the rise in FY 2017. Total volume has risen by 25% overall, with a 37% increase in ECN and SEF volume, and a decline of 8% in the Swap Dealer platform.