A lot of news is coming out of US forex broker FXCM recently. The broker enjoyed a surge in customer activity during September both in retail and in institutional trading. The impressing numbers are in line with numbers from other brokers, such as FxPro.
In the M&A front, FXCM completed the acquisition of Foreland, a broker from Japan, just after announcing a significant cooperation in France.
Last but not least, they have debuted a currency rates on the NYSE floor. This includes the Dow Jones FXCM Dollar index. All the details from the official press releases are below.
FXCM Reports Monthly Metrics
Continued Strong Growth – Second Consecutive Record Quarter
NEW YORK, NY, October 13, 2011 – FXCM Inc. (NYSE: FXCM) today announced certain key operating metrics for September 2011 for its retail and institutional foreign exchange business. Monthly activities included:
September 2011
Retail Trading Metrics
- Retail customer trading volume(1) of $368 billion in September 2011, 1% higher than August 2011 and 47% higher than September 2010. Volume from indirect sources was 54% of total retail volume. Retail customer trading volume(1) for the third quarter 2011 was $1,042 billion, the highest in FXCM history and 11% higher than second quarter 2011 and 34% higher than third quarter 2010.
- Average retail customer trading volume(1) per day of $16.7 billion in September 2011, 6% higher than August 2011 and 47% higher than September 2010.
- An average of 481,359 retail client trades per day in September 2011, 4% higher than August 2011 and 59% higher than September 2010.
- · Tradeable accounts(2) of 171,319 as of September 30, 2011, decrease of 3,625, or 2% from August 2011, and a decrease of 3,353,or 2%, from September 2010.
Institutional Trading Metrics
- · Institutional customer trading volume(1) of $129 billion in September 2011, 7% higher than August 2011 and 114% higher than September 2010. Institutional customer trading volume(1) for the third quarter was $309 billion, the highest in FXCM history and 44% higher than second quarter 2011 and 64% higher than third quarter 2010.
- · Average institutional trading volume(1) per day of $5.8 billion in September 2011, 12% higher than August 2011 and 114% higher than September 2010.
- · An average of 22,762 institutional client trades per day in September 2011, 171% higher than August 2011 and 565% higher than September 2010.
“We are pleased to deliver another record quarter in both retail and institutional trading volume, as FXCM expands its share of the retail trading marketplace,” said Drew Niv, FXCM’s President and CEO. “Revenue per million continues to be constrained by low interest rates and increased trading from high volume, lower margin clients.”
More information, including historical results for each of the above metrics, can be found on the investor relations page of the Company’s corporate web site, www.fxcm.com.
This operating data is preliminary and subject to revision and should not be taken as an indication of the financial performance of FXCM Inc. FXCM undertakes no obligation to publicly update or review previously reported operating data. Any updates to previously reported operating data will be reflected in the historical operating data that can be found on the Investor Relations page of the Company’s corporate web site, www.fxcm.com.
(1) Volume that FXCM customers traded in period translated into US dollars.
(2) An account that has sufficient funds to place a trade in accordance with FXCM trading policies.
About FXCM Inc.
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM’s U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
Trading foreign exchange and CFDs on margin carries a high level of risk, and may not be suitable for all. Read full disclaimer.
FXCM Completes Acquisition of Japanese Forex Broker Foreland Forex Co., Ltd.
NEW YORK, NY, October 13, 2011 – FXCM Inc. (NYSE: FXCM), a leading online provider of foreign exchange, (“FX”), trading and related services worldwide, today announced that its subsidiary FXCMJapan Securities Co., Ltd. (“FXCM Japan”) has completed its acquisition of Japanese FX broker Foreland Forex Co., Ltd. (“Foreland”) for approximately $17 million, net of cash and liquid assets acquired.
“We welcome the Foreland clients to the FXCM family and are confident that they will benefit from FXCM’s premier trading technology and execution along with the many other resources FXCM has to offer its clients,” said Drew Niv, CEO of FXCM Inc.
“Foreland will more than double our size in Japan,” he continued. “After onetime restructuring costs in the fourth quarter 2011, we believe we will see significant synergies through integration with our existing operations. At approximately two times the estimated 2012 EBITDA contribution, we believe this transaction represents compelling value.”
FXCM Japan offers clients the benefit of FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs on our flagship and award winning platform FXCM Trading Station. Clients are able to trade forex, oil, and gold, silver and stock indices with FXCM. Additional advantages include mobile trading, one-click order execution and trading from real-time charts. FXCM offers clients the ability to place stops and limits freely and allow traders to customize them for every ticket. FXCM supplies over 600 custom indicators and permits clients the ability to build their own.
About FXCM Inc.
FXCM Inc. (NYSE: FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers worldwide.
At the heart of FXCM’s client offering is No Dealing Desk forex trading. Clients benefit from FXCM’s large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution, and trading from real-time charts. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Read full risk disclaimer.
Unless otherwise noted, all references to “FXCM” refer to FXCM Inc. and its consolidated subsidiaries.
Forward Looking Statements:
This press release contains forward−looking statements that involve risks and uncertainties, as well as assumptions, and which reflect our current views with respect to, among other things, our operations and financial performance. If the risks and uncertainties ever materialize or the assumptions prove incorrect, the results of FXCM and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions due to (1) changes in economic, business, competitive, technological and/or regulatory factors, (2) failure to receive regulatory approval for the acquisition, (3) failure to retain the customers of Foreland, (4) failure to compete successfully in this highly competitive and rapidly changing marketplace, (5) failure to retain key employees, and (6) other factors affecting the operation of the respective businesses of FXCM and Foreland. For further information regarding risks and uncertainties associated with FXCM’s business, please refer to FXCM’s Securities and Exchange Commission reports, including, but not limited to, FXCM’s Annual Report on Form 10-K for the year end December 31, 2010 and subsequently filed reports, which are accessible on the SEC’s website at www.sec.gov. FXCM undertakes no obligation to publicly update or review any forward−looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Non-GAAP Financial Measures
This press release includes a discussion of EBITDA which are not financial measures under U.S. generally accepted accounting principles (GAAP). In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with GAAP. These non-GAAP financial measures are provided to enhance the user’s overall understanding of the underlying operating performance of the FXCM and Foreland business combined. FXCM believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency to key measures used to evaluate the performance and liquidity of the company. Management uses non-GAAP financial measures for evaluating financial and operations decision making and as a means to evaluate the performance of FXCM.
FXCM Debuts Currency Rates on the NYSE Trading Floor
FXCM Inc. has created a special application specifically for showing currency rates on the floor of the New York Stock Exchange. The rates, displayed in the four corners of the Main Room of the trading floor beneath the larger data boards, shows currency prices streamed from FXCM in real-time, 24 hours a day, Sunday through Friday.
The NYSE trading floor community and the NYSE’s onsite press will be able to follow current prices in eight of the world’s most active or important currency pairs, and also see charts for two of the most important currency pairs. The rate boards also display the NEW Dow Jones FXCM Dollar Index (DJI: ^USDOLLAR ), which reflects the change in value of the U.S dollar measured against a basket of the most liquid currencies in the world. FXCM can seamlessly change the pairs displayed at any time to feature the most important or active of the day as the markets change.
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