Retail FX Volumes At GAIN Capital Hit $222 Billion in June

Publicly listed brokerage GAIN Capital Holdings, Inc. (NYSE: GCAP) said monthly FX trading on their platform has soared more than 24 percent in June 2020, the strongest advance since it hit a record during the coronavirus concern-driven market swings.

In particular, GAIN Capital’s retail clients transacted a total of $222 billion last month, up 60 percent year-over-year from $138 billion in June 2019. Over a monthly timetable, GAIN’s latest retail OTC volume was higher from $179 billion in May 2020.

The group’s average daily volumes (ADVs) also rose in June to $10.1 billion from $8.5 billion the month prior and $6.9 billion per day in June 2019. This figure, however, was lower by 42 percent from the peak recorded in March at $17.7 billion.

Meanwhile, three-month trailing active accounts in the OTC retail segment totaled 93,433 by the end of June, down 3.5 percent on a monthly basis from 96,774 accounts in May 2020. GAIN’s retail account swelled by over 34 percent when weighed against the same month a year ago.

Activity at major institutional ECNs and retail platforms has rebounded strongly in June after having consolidated in April and May as intense chaos triggered by Covid-19 lost some steam.

GAIN Capital made the headlines last month after its shareholders have overwhelmingly approved their $236 million combination deal with INTL FCStone.

More than 71 percent of votes cast by the FX broker’s shareholders were in favour of the transaction, representing 86 percent of the total in attendance, well above the required two-thirds threshold. Nearly 83.2 percent of all GAIN’s shareholders attended the special meeting to decide on the merger proposal.

Sean O’Connor, CEO of INTL FCStone, will lead the new combined firm, while Glenn Stevens, who has been GAIN’s CEO for over 20 years, will continue to lead the former business within INTL FCStone.