CFTC releases financial data of all FCMs in America – FXCM storms ahead of GAIN Capital

The Commodity Futures Trading Commission has released annual data which details the performance of all Futures Commission Merchants (FCMs) in the United States, including banks and electronic trading companies, for the reporting period ending December 30, 2015.

Whilst the report covers full details of adjusted net capital, net capital requirement, segmented customer assets, excess or deficient funds in segmented accouns, and amout of retail FX obligation for all companies registered as RFEDs (Retail Foreign Exchange Dealers) or FCMs, the majority are lage banks.

The interesting aspect within this report is that it displays very important metrics which determine the size and strength of all of the largest and most prominent FX brokerages in the United States, particularly Interactive Brokers, IBFX, OANDA Corporation, FXCM Inc (NYSE:FXCM) and Gain Capital Holdings Inc (NYSE:GCAP).

FXCM completed 2015 in very good condition indeed, with an adjusted net capital figure of $41,315,912, which is considerably higher than its required net capital amount, which stands at $28,915,267, putting paid to any notion that FXCM is in anything other than fine form indeed.

GAIN Capital’s net adjusted capital stood at $40,407,240, with its requirement set at $26,330,636.

In terms of retail FX obligation, GAIN Capital’s figure of $136,612,728 is considerably lower than FXCM’s $188,305,336.

When bearing in mind IBFX’s $51,645,473, it demonstrates the size differential between FXCM and its domestic peers.

Last week, FinanceFeeds reported that FXCM’s annual trading volume for 2015 was substantially larger than that of peer and main rival GAIN Capital. The release of these figures by the CFTC now bolsters our report and shows FXCM’s larger position across many metrics.

This year, Phillip Capital may make significant inroads into the US market, as explained to FinanceFeeds in November 2015 by CEO Teyu Che Chern at a private seminar in New York, when the company announced its intention to expand its reach from its native Singapore into the United States by providing on-exchange FX trading across some of Chicago’s prominent venues.

North America’s giants continue to go from strength to strength, and indeed the year ahead will likely be one of steady progress and maintaining these figures rather than embarking on acquisition campaigns as has been the case in previous years.

Photography: Downtown Manhattan, copyright Andrew Saks-McLeod