FXCM Inc, released its operating metrics for the month of May on Wednesday. Report provides a wider insight to the institutional and retail forex trading.
Leucadia deal after the Swiss franc impact seems to be a neverending nightmare for the FXCM as numbers show. Although the retail segment showed an increase again, institutional segment is constantly falling deeper since its highest point in October 2014.
Let’s take a look closer to respective sectors of FXCM. The retail sector experienced a better month compared to April (mostly hit by low volatility), risis in trading volumes by $331 billion, what is 8% higher month-on-month. On a yearly basis, retail traders lifted their trading appetite by 39% in comparison with trading volumes in May 2014. An average trading volume per day reached $15.8 billion during the month of May, what proved to be a 14% increase than during the previous month. On a yearly basis, it rose 65%. As for the accounts, tradeable ones ended at 188,484 accounts at the end of May 31 this year, what is an increase of 263 accounts M/M and by 29,583 accounts since the end of May 2014. As for the trade, average of retail client trades hiked 2% to 520,282 on monthly basis and 65% on an annual basis.
Nevertheless, FXCM’s institutional sector experienced 6% decrease of trading volume in May to $206 billion, although 11% higher as in May 2014. Trading volume per day reached $9.8 billion in average, what is 2% lower as in April 2015, nevertheless 17% hike when comparing it to May 2014. Average trades per day in institutional category totalled 38,394, what is 30% month-on-month and 31% lower on an annual basis.
Part of this slowdown may be contributed to actual problems of the company as it had to sell non-core assets to Leucadia’s units due to financial problems after the EUR/CHF cap removal. FXCM has already agreed on selling its Asian unit to Rakuten Securities this year and Faros Trading to Leucadia’s Jefferies Group, while Leucadia’s loan of $300 million is still hanging above FXCM’s wallet.
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