June 15, 2011: China eases certain Forex rules

China’s State Administration of Foreign Exchange (or “SAFE”), which sets foreign currency regulations in China, announced yesterday a series of new rules to take effect August 1 which indicate further easing of general Forex controls in China.

Read More

June 14, 2011: The US CFTC delays certain portions of Dodd-Frank

The US Commodity Futures Trading Commission (CFTC) decided today, in a 5-0 commissioners’ vote, to propose delaying implementation of certain Dodd-Frank Act swap rules scheduled to take effect on July 16 to (at least) the end of the year. The delay will allow more time for the regulators to finalize certain rules which are still a work-in-progress, such as defining which banks, hedge funds and other firms are to be defined as swap dealers.

Read More

June 9, 2011: IG Group reports Q4 results, and FXCM reports May metrics – not bad

IG Group reported results this morning for Q4-2011 (the company has a May 31 fiscal year end), and of course for its full year ended May 31/2011. Saw 2% overall revenue growth in Q4, steady if unspectacular. Home base in the UK actually saw a small revenue decline in Q4, £44 million this year versus £45 million in Q4-2010. Australia and non-UK-Europe businesses grew by double digits, offsetting falling Japanese revenues following the implementation of leverage restrictions in Japan. IG Group still does more than half of its business in the UK. Part of the reason for the slow Q4 (March thru May 2011) in the UK was attributed to the Royal Wedding, which effectively caused a week-and-a-half UK trading holiday. The markets reacted positively at first, with IG Group’s share price up 2% in early London trading, although they were basically flat toward the end of the day.

Read More

June 2, 2011: The FDIC (and OCC) propose Forex rules – are the big US banks coming?

A couple of recent and similar moves by two US regulators, the FDIC (or Federal Deposit Insurance Corporation) and the OCC (or Office of the Comptroller of the Currency), went largely unnoticed in the Forex industry, and in our view were somewhat misinterpreted by those who did notice. However, these moves spoke volumes to us about future competition in the Forex business – in particular about the potential entry of several large US banks into the business.

Read More

May 29, 2011: Here come the hedge funds!

FXCM’s share price soared on Friday by 11% following the release of information (as reported in Business Insider) that several large and influential hedge fund investors had accumulated significant positions in FXCM stock. The largest reported position was an approximate one million share holding in FXCM by Ken Griffin’s Citadel Investment Group, among the largest and most successful hedge funds in the world.

Read More

May 17, 2011: FXCM and Gain Capital announce Q1-2011 results – what did we learn?

FXCM and Gain Capital (Forex.com) each announced their Q1 results yesterday. Wall Street was clearly unimpressed with both firms, as the shares of both traded down sharply – FXCM by 17%(!!!) and Gain by 6%. (FXCM is now down 29% from its December IPO price, Gain is off 30% – for more details on publicly traded and M&A multiples and valuation comps in the Forex sector see our Online Forex Industry Report). However we at LeapRate saw the Q1 announcements of both firms mainly positively, with both making nice volume and client assets gains (following similar decent results of early reporters Swissquote and IG Group), and serious inroads in Asia, positioning both firms for strong results down the road.

Read More

March 29, 2011: Forex IPOs – will any more firms go public?

In the aftermath of FXCM’s and Gain Capital’s successful IPOs last December, a number of other Forex firms (and their shareholders) have begun to look more closely at going public as well. While we understand that a number of other firms would like to go public soon – and are looking at stock markets including the NYSE and Nasdaq in the US, the London Stock Exchange, and the Toronto Stock Exchange as listing options – the road to becoming a public company will in our view be a very difficult one for other Forex firms, certainly for the foreseeable future.

Read More
arrow

Send this to a friend