Gain Capital ‘Well Positioned’ to Buy Losers in SNB TurmoilDavid Goodman
Gain Capital Holdings Inc., an online retail foreign-exchange trader, said it’s well positioned to take over the business of some of the losers in the Swiss-franc market shock.
The company, which owns Forex.com, made a profit while some of its competitors went bust in market convulsions sparked when the Swiss National Bank removed its currency cap against the euro on Jan. 15. The decision sent the franc as much as 41 percent higher against the shared currency.
“We remain well capitalized, financially sound and well positioned to grow market share and, as one of the industry’s leading consolidators, take advantage of the strategic acquisition opportunities that will result from yesterday’s events,” Glenn Stevens, chief executive officer of Bedminster, New Jersey-based Gain Capital, said in a statement.
Gain’s shares rose for the first time in six days, advancing 2.2 percent to $8.46 at 12:01 p.m. in New York trading.
FXCM Inc., the largest U.S. retail foreign-exchange brokerage, said clients owe $225 million on their accounts after the SNB decision. It is in talks to raise about $200 million from Jefferies, people with knowledge of the matter said.
Global Brokers NZ Ltd. said losses from the franc’s surge were forcing it to shut down and Alpari (UK) Ltd. said it “entered into insolvency.”
Oanda Corp., a Toronto-based retail foreign-exchange brokerage, was approached by competitors after the market rout.
“We actually had conversations with a number of firms that were looking for potential buyers during the course of the day,” Oanda CEO Ed Eger said in a telephone interview. “We ultimately decided not to do any of that.”
Oanda experienced its own losses in the wake of the SNB move, though Eger declined to give details. “We are still very well capitalized,” he said.