Retail Volumes Affecting Gain Capital
Recent changes in the market have prompted for trading volumes to be altered with multiple brokerages. Gain Capital Holdings Incorporated reported that their aggregated trading volumes in September 2019 have dropped by a small measure in comparison to August. First, the trading firm saw its retail clients transact 14% less than average. During August, clients were trading at a month-over-month volume of $176 Billion. However, in September, that number dropped to $151.5 Billion. Furthermore, the OTC Volumes for Gain Capital saw a decrease of 1.3%.
The lower volumes didn’t stop that the OTC’s. It moved on to the average daily amounts, which are reported at $7.2 Billion for September. This is down by 10% in comparison to August and July. Compared to the same month in 2018, it’s a drop of 4%. Gain Capital Holdings Inc also saw eleven thousand accounts become inactive from August to September. Instead of having 129+ Thousand traders, there was only 118+ Thousand. It’s anticipated that accounts will reopen when markets adjust to reasonable valuations.
Weak Financial Results
Gain Capital Holdings Inc also saw a drop in futures trading during September. This was the highest loss at 25%. August saw 797,472 Thousand Contracts active amongst traders. That figure dropped to 603,382 in September. Unfortunately, these lower volumes have begun to affect the valuation of Gain Capital Stock. Their stock is trading at $4.89 per share, which is 1% lower than at the beginning of October. Gain’s stock is safe so long as it doesn’t hit the all-time low of $3.78.
Many analysts claim these slight drops in September were the result of Gain Capital Holding Inc parting ways with Samantha Roady, the former Head of Retail Business at the trading firm. She was instrumental in the development of Gain Capital, working with them for twenty years since 1999. Glenn Stevens, the Chief Executive Officer at Gain, will take on the additional responsibilities that Samantha managed. At the same time, he also operates City Index and Forex.com. The overwhelming tasks hitting Stevens is prompting for declines in Gain’s operations.