UK forex brokerage London Capital Group Holdings (LCG) has resulted with a positive revenue and profitability from the high market volatility caused from the UK referendum in June, the broker said on Tuesday in a filing with the London Stock Exchange (LSE).
The UK voted on 23 June, 2016, to exit the European Union (Brexit), causing markets to experience deep volatility and the British pound (GBP) to fall sharply on the Euro (EUR) to its lowest in more than 30 years.
Also as a result of the Brexit vote, the broker has been contacted by the UK Financial Conduct Authority (FCA), the only regulator of LCG, in regards to the regulatory fees it pays. Although no details were provided, the broker said it does not expect this to affect its financial position.
Some other forex brokers have also come out after the UK vote without negative consequences. AxiTrader, Capital Index, FXPrimus, Admiral Markets and its affiliate MTrading all emerged from the Brexit-related market volatility without any negative impact on their financials. Meanwhile, Plus500 said it saw record-high number of sign-ups and new customers in a single day after the Brexit vote, as well as record spread revenue, and Oanda also reported a record-high trading volumes on June 24. Gain Capital’s institutional forex unit GTX reached on Friday a record daily trading volume of $24.2 billion.
The London-based LCG holding company offers online trading of forex, indices, shares, and commodities. Its fully-owned subsidiary London Capital Group Ltd. (LCG) is regulated by the UK’s Financial Conduct Authority (FCA).