GAIN Capital Responds to FCA’s Consultation Paper

GAIN Capital Holdings, Inc notes the FCA’s consultation paper issued today (CP 16/40 – Enhancing conduct of business rules for firms providing contract for difference products to retail clients).

GAIN is in favor of measures that enhance consumer protection in the FX/CFD market.  The Company in particular supports all measures to curb aggressive marketing to inexperienced investors and to ensure all clients fully understand the risks of FX/CFD trading.

The Company operates a broadly diversified business, which includes a retail FX/CFD business spanning eight regulatory jurisdictions, including several which currently set leverage ratios for retail investors at similar levels to those proposed by FCA.  The Company also operates a U.S.-based retail futures business and an international institutional trading business, GTX, which are unaffected by the FCA’s proposals.

Several of the other changes proposed by the FCA are consistent with GAIN Capital’s current practices and should not require significant changes to its operations.  The Company does not offer any binary trading products.

GAIN also notes the FCA has proposed a timeline of March 7, 2017 to consider these new rules and looks forward to working closely with the FCA in the coming months.

Throughout its history the Company has excelled at times of regulatory change and views with confidence its ability to navigate the current proposed changes.