ITG Reports Q3 2015 Earnings, SEC Fine Saps Income

ITG (NYSE:ITG), an independent 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 broker and research provider, has reported its financial metrics for Q3 2015, which were weighted down heavily by a fine by the US Securities and Exchange Commission (SEC).

Back in July, ITG as well as its affiliate AlterNet Securities agreed to collectively pay $20.3 million to settle charges over the breach of Dark Pool Dark Pool Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek Read this Term trading confidentiality with the SEC.

In terms of the Q3 2015 metrics, ITG reported a GAAP net income of $2.7 million, which represents a -76.3% drop YoY from $11.4 million in Q3 2014. The group also experienced a similar decline across its net income per diluted share, which yielded $0.08 in Q3 2015, compared with $0.32 in Q3 2014.

In terms of revenues, ITG secured a revenue of $120.4 million in Q3 2015, representing a -10.7% YoY drop off from $134.8 million in revenues observed during Q3 2014. Furthermore, expenses at ITG also declined during Q3 2015, retreating to just $117.2 million from $122.7 million during Q3 2014, or -4.5% YoY.

Trading Volumes in Focus

Despite ITG’s regulatory repercussions, average daily trading volume across its US operations was 152 million shares during Q3 2015, which managed to grow 3.4% YoY from 147 million shares in Q3 2014. The group’s POSIT average daily US volume was also reported at 67 million shares during Q3 2015, however this figure constituted a decline of -6.9% YoY from 72 million shares Q3 2014.

ITG’s European business was also uneven during Q3 2015, with its average daily value traded in POSIT coming in at $1.2 billion, growing 20.0% YoY from just $1.0 billion in Q3 2014.

Last month, ITG made headlines after it launched Market Compass, a mobile application based on predictive modeling techniques for traders. ITG’s Market Compass was designed to help streamline a variety of tasks for traders and market participants, including market openings, advanced modeling methodologies, and sector-specific forecasting. The offering was geared primarily for institutional traders, with a specific emphasis on equities and foreign exchange (FX) trading.

ITG’s share prices have experienced a steady retreat off of a 52-week high of $32.07 in April. The fallout of a fine by the SEC helped contribute to a large sustained sell off in shares all the way down to a 52-week low of $12.63 during September. At the time of writing however, shares of ITG have settled at $17.03 ahead of the US open Thursday.