Gain Capital’s trading volumes continue to fall with almost 5%MoM in May

GAIN Capital Holdings, Inc. (NYSE: GCAP) reported its operating metrics for May 2020. The US online trading services provider’s retail segment metrics continue to fall but less dramatically than the drops the company reported last month.

The OTC trading volume for the retail segment fell to $179.3 billion from $188.1 last month, registering a 4.7% MoM decrease. The numbers are also down by 0.6% compared to May last year.

Gain Capital’s trading volumes

The average daily volume OTC trading was $8.5 billion, down by 1.2%, compared to April when it was 8.6%.

Futures contracts amounted to 543,683 in May, a 4.1% MoM drop compared to 567,189 last month.

Gain Capital announced that the company’s stockholders voted last Friday to approve the set forth in February merger with financial services provider INTL FCStone. As per the agreement, INTL FCStone would acquire Gain for $6.00 per share in all-cash transaction, amounting to approximately$236 million in equity value. NTL FCStone has also agreed to make an offer at closing to repurchase GAIN Capital’s $92 million convertible notes due 2022 as part of the transaction.

The Commodity Futures Trading Commission (CFTC) issued an order on Monday settled charges against Gain Capital UK Limited, operating the group’s retail brands and City Index, for violations in supervision and handling of a customer account managed by an unregistered commodity trading advisor. The US watchdog ordered Gain UK to pay a $250,000 civil monetary penalty and to disgorge $241,671.

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