Gain Capital’s GTX sets record $24.2 bln volume on Friday, while FXCM boasts stable performance

Gain Capital’s GTX sets record $24.2 bln volume on Friday, while FXCM boasts stable performance


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Against the ongoing market volatility and the new GBP 31-year low against the dollar, the large global forex brokers continue to report on their performance on June 24 and their intentions to keep their Brexit-related margin requirements.

Gain Capital (NYSE:GCAP) reported that its institutional forex arm GTX reached a record trading volume of $24.2 billion on Friday. This is $6.4 billion more than the previous daily record set on January 29 this year. In comparison, the total trading volume of GTX for this past May was nearly $ 214.7 billion.

The more significant part of trading on Friday was executed through GTX’ electronic communications network (ECN) – a total of $19.9 billion, while the remaining $4.3 were executed via the registered swap execution facility.

According to GTX’ data the most heavily traded forex pairs were GBP/USD, EUR/USD and USD/JPY.

The CEO of GTX Vincent Sangiovanni noted that the broker’s clients used both active and passive execution tactics and the latter prevented them to avoid the wide bid/offer spreads.

On Friday Gain Capital itself reported it was not adversely affected by the high market volatility on Friday, but will keep the higher margin requirements.

Meanwhile, FXCM, the largest US forex broker, reported that its systems and operations functioned normally and without any material adversity during Brexit, without revealing specific figures at this time.

According to Drew Niv, CEO of FXCM, the stable performance was thanks to the risk management measures the broker took beforehand by rising the margin requirements on some instruments. We remind you that FXCM was among the first forex brokers to hike the margin requirements on some instruments ahead of the EU referendum in the UK on June 23.

“The FXCM Trading Station operated normally throughout the Brexit market volatility and we are extremely pleased with our liquidity providers, our staff who worked through the night and our clients who continued to heed our warnings during these historical market movements,” he said and added that FXCM’s risk committee will continue to monitor and hedge the company’s exposure.

Drew Niv also said that for the time being FXCM will keep the higher margins and will bring them to their usual when the market returns to more normal liquidity levels in the coming days.

Gain Capital and FXCM are among the majority of large forex brokers who reported smooth sailing through the Brexit shock, while some, like Plus500, said it had set some records on Friday.

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