BEDMINSTER, N.J., July 9, 2018 /PRNewswire/ -- GAIN Capital
Holdings, Inc. (NYSE: GCAP) ("GAIN" or "the Company") today
reported certain operating metrics for the month of June 2018.
|
June-18
|
May-18
|
June-17
|
Sequential
Change
|
Year-over-year
change
|
Retail
Segment
|
|
|
|
|
|
OTC Trading
Volume(1)
|
$
|
213.9
|
|
$
|
243.3
|
|
$
|
241.8
|
|
(12.1)%
|
|
(11.5)%
|
|
OTC Average Daily
Volume
|
$
|
10.2
|
|
$
|
11.1
|
|
$
|
11.0
|
|
(8.1)%
|
|
(7.3)%
|
|
12 Month Trailing
Active OTC Accounts(2)
|
130,018
|
|
131,036
|
|
134,120
|
|
(0.8)%
|
|
(3.1)%
|
|
3 Month Trailing
Active OTC Accounts(2)
|
76,654
|
|
77,603
|
|
83,511
|
|
(1.2)%
|
|
(8.2)%
|
|
|
|
|
|
|
|
Institutional
Segment
|
|
|
|
|
|
ECN
Volume(1)
|
$
|
297.5
|
|
$
|
385.5
|
|
$
|
238.1
|
|
(22.8)%
|
|
24.9%
|
|
ECN Average Daily
Volume
|
$
|
14.2
|
|
$
|
17.5
|
|
$
|
10.8
|
|
(18.9)%
|
|
31.5%
|
|
Swap Dealer
Volume(1)
|
$
|
64.8
|
|
$
|
52.4
|
|
$
|
32.0
|
|
23.7%
|
|
102.5%
|
|
Swap Dealer Average
Daily Volume
|
$
|
3.1
|
|
$
|
2.4
|
|
$
|
1.5
|
|
29.2%
|
|
106.7%
|
|
|
|
|
|
|
|
Futures
Segment
|
|
|
|
|
|
Number of Futures
Contracts
|
625,260
|
|
694,481
|
|
582,598
|
|
(10.0)%
|
|
7.3%
|
|
Futures Average Daily
Contracts
|
29,774
|
|
31,567
|
|
26,482
|
|
(5.7)%
|
|
12.4%
|
|
12 Month Trailing
Active Futures Accounts(2)
|
7,881
|
|
7,929
|
|
7,885
|
|
(0.6)%
|
|
(0.1)%
|
|
|
|
|
|
|
|
_________________________________________
All volume figures reported in billions.
1 US dollar equivalent of notional amounts
traded.
2 Accounts that executed a transaction during the
relevant period. For the quarter, indirect volume represented 25%
of total retail OTC trading volume.
Management Commentary
"Operating metrics for the second quarter demonstrate our
continued progress in executing on our revenue volatility reduction
initiatives," said Glenn Stevens,
Chief Executive Officer. "The implementation of our new, AI-driven
hedging model, which we began rolling out in March, enables us to
optimize our hedging activity and reduce variability in our
results. These efforts helped deliver revenue per million of
$107 during the second quarter. We
are pleased with our progress during the first half of the year
and, following the sale of our GTX business, feel we are in an even
stronger position to continue to drive growth and profitability as
we focus on our core retail business."
Additional Revenue Detail, Tax Rate and Share Count
Assumption Update
The reported $107 revenue per
million of Retail Revenue included $3
per million of non-operating foreign exchange revenue arising from
translation of positions to the Company's various subsidiaries'
functional reporting currencies. This FX exposure was also
hedged as part of the Company's ordinary course corporate hedging
program, which resulted in approximately $2.2 million of negative revenue recorded within
Other Revenue in the period.
Following the completed sale of GAIN's GTX ECN business on
June 29th, 2018, the Company has
updated its tax rate assumptions for full year 2018. Excluding the
GTX business, GAIN expects its tax rate for the full year to be
approximately 27%-28%. Including GTX ECN results for the first half
of 2018 and one-off costs related to the sale of the business, the
Company expects its full year 2018 tax rate to be approximately
13%.
The Company also estimates its weighted-average common shares
outstanding for the second quarter 2018 to be approximately 45.3
million shares.
Historical metrics and financial information can be found on the
Company's investor relations website http://ir.gaincapital.com.
This operating data is preliminary and subject to revision and
should not be taken as an indication of GAIN's financial
performance. GAIN undertakes no obligation to publicly update or
review previously reported operating data.
About GAIN
GAIN Capital Holdings, Inc. provides innovative trading
technology and execution services to retail and institutional
investors worldwide, with multiple access points to OTC markets and
global exchanges across a wide range of asset classes, including
foreign exchange, commodities, and global equities. GAIN
Capital is headquartered in Bedminster, New Jersey, with a global presence
across North America, Europe and the Asia
Pacific regions. For further company information, visit
www.gaincapital.com.
Forward-Looking Statements
In addition to historical information, this release contains
"forward-looking" statements that reflect management's expectations
for the future. A variety of important factors could cause results
to differ materially from such statements. These factors are
noted throughout GAIN Capital's annual report on Form 10-K for the
year ended December 31, 2017, as
filed with the Securities and Exchange Commission on March 14, 2018, and include, but are not limited
to, the actions of both current and potential new competitors,
fluctuations in market trading volumes, financial market
volatility, evolving industry regulations, errors or malfunctions
in GAIN Capital's systems or technology, rapid changes in
technology, effects of inflation, customer trading patterns, the
success of our products and service offerings, our ability to
continue to innovate and meet the demands of our customers for new
or enhanced products, our ability to successfully integrate assets
and companies we have acquired, our ability to effectively compete,
changes in tax policy or accounting rules, fluctuations in foreign
exchange rates and commodity prices, adverse changes or volatility
in interest rates, as well as general economic, business, credit
and financial market conditions, internationally or nationally, and
our ability to continue paying a quarterly dividend in light of
future financial performance and financing needs. The
forward-looking statements included herein represent GAIN Capital's
views as of the date of this release. GAIN Capital undertakes no
obligation to revise or update publicly any forward-looking
statement for any reason unless required by law.
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SOURCE GAIN Capital Holdings, Inc.