StoneX Q1 FX Revenue Jumps 1,200% after GAIN Acquisition

StoneX Group (NASDAQ:SNEX), previously known as INTL FCStone, has published its financial results for the first quarter of the fiscal year 2021, ending on December 31. This is the first full quarterly results of the company after its acquisition of GAIN Capital.

The results are remarkable with a 37 percent year-on-year gain in the operating revenue, which, in absolute numbers, touched $380.1 million. Additionally, the net quarterly income went up to $19.5 million, 20 percent higher.

FX and CFDs Business from GAIN

The FX and CFDs business of the company boomed, especially with GAIN Capital as a subsidiary. The operating revenue from FX and CFDs jumped to $59.8 million from the previous year’s corresponding three month’s revenue of $4.6 million.

The trading activities with FX and CFDs instruments showed a significant jump in the three months. The average daily volume with FX and CFDs contracts came in at $10.69 billion.

StoneX completed the GAIN acquisition for $36 million last August with the plans for the Merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term of GAIN’s UK operations. However, the parent company is now planning to mitigate its exposure to the British pound in the Gain subsidiaries.

To achieve this, StoneX increased the US dollar balances in the Gain subsidiaries and utilized derivative transactions to mitigate the remaining British pound exposure. At the end of the quarter, the company recognized a $3.7 million unrealized loss on these derivative positions.

Commenting on the numbers, StoneX CEO, Sean M. O’Connor said: “Q1 was a solid start to the new fiscal year with all our segments showing growth in both operating revenues and segment income, despite generally lower trending 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 significantly lower interest rates. We saw strong growth in customer volumes, new account activity and customer float.”

“We have made good progress on integrating Gain, including realizing cost synergies and are actively developing revenue synergy opportunities.”