Exclusive: Glenn Stevens on New GAIN Brand, Industry Consolidation

After GAIN Capital introduced that it’s getting ready to section out its City Index model through the firm’s newest earnings name, we knew that the dealer’s administration group has a brand new view available on the market. All that was left was for us to achieve out to the corporate’s CEO Glenn Stevens and get the small print.

In the next strains, we elaborate on his ideas in regards to the industry-wide impression of latest regulatory modifications out there. He additionally shared some particulars in regards to the new (which is on the identical time outdated) model that the corporate will begin to roll out globally in Australia later this yr.

Capitalizing on the company picture of the dad or mum firm of two main brokers within the {industry} ( and City Index) was elusive for the New York-listed agency till now. The information that GAIN Capital would be the new professional-oriented service of the corporate is opening a brand new alternative to spend money on a newly constructed and long-term sustainable providing.

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“The GAIN Capital retail model is an integral a part of our 3-year progress technique. On the again of in depth market and buyer analysis we confirmed that there’s appreciable energy and credibility within the GAIN Capital title globally, and it affords the chance to draw skilled, lively merchants on a world degree and increase into new product & providers and new buyer segments sooner or later,” Glenn Stevens defined to Finance Magnates.

STP Offering on the Cards

With the orientation of GAIN Capital to extra skilled, skilled merchants, the providing that GAIN Capital is planning to ship to the market is more likely to be complemented with new merchandise.

Stevens shared that the GAIN Capital model can be constructed on the corporate’s present City Index providing and its international regulatory footprint, however the agency is getting ready some enhancements to create a very differentiated service tailor-made to the wants of skilled merchants.

Existing clients of City Index will not be alleged to be affected in any approach by the branding technique change. With a diversified product combine, nonetheless, purchasers may achieve entry to higher buying and selling circumstances and an expanded product combine.

The GAIN Capital Brand

The apparent benefits of getting GAIN Capital’s model are related to the truth that the title is similar as of the NYSE-listed agency. But that isn’t the only motive for the modifications which the dealer is planning.

“Leveraging the GAIN Capital title as a retail model allows us to totally leverage our fame as a trusted, well-capitalized international supplier. It can be a chance to create a contemporary retail model identification for GAIN Capital that may develop with us into the longer term,” mentioned Glenn Stevens.

ESMA Changes to the Market

We additionally requested Stevens which {industry} traits he noticed over the previous months, particularly in mild of the brand new regulatory framework in Europe. He has little doubt that the ESMA rules have had an impression throughout our {industry}.

“We’ve seen a number of of the biggest UK brokers report materials decreases in lively accounts and quantity for the reason that new rules got here into drive, however the high tier brokers are massive sufficient and have sufficient geographic variety of their companies to climate this transformation,” the CEO of GAIN Capital elaborated.

The firm has been one of many companies within the {industry} that has additionally been affected. A few days in the past a report that buying and selling volumes declined by 50 % year-on-year circulated throughout the wires. Despite this, Stevens is upbeat about how the corporate dealt with the transition.

“Our group did a strong job navigating the brand new ESMA rules; we had been capable of decrease the impression and shield the vast majority of income from our purchasers within the UK and EU by efficiently specializing in our skilled purchasers,” he said.

Year of Consolidation

In the views of Stevens, there can be additional consolidation within the {industry}, particularly within the UK and Europe, as the total impression of the ESMA rules turns into recognized. Second and third tier brokers who don’t have the mandatory scale, regional variety, or stability sheet to resist the decrease shopper exercise as a result of leverage restrictions can be most affected.

“For GAIN although, as we take into consideration our enterprise in 2019 and past, we consider the important thing to unlocking additional worth is at first by making investments to speed up natural progress. We even have a powerful stability sheet which can permit us to make the most of enticing M&A alternatives ought to they come up,” Stevens elaborates.

Despite the corporate’s dedication to natural progress, he did spotlight that the agency may very well be looking out for extra acquisitions supplied that the costs are enticing. With the {industry} being historically behind the curve on reevaluating strategic choices, the continuing decline in volatility may exert extra stress on brokers to promote their shopper portfolios.

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David is the founder of The firm originates business financing for companies of all size in the Canadian marketplace . Originations include business loans, term loans, asset based lines of credit, SR ED Tax credit financing , and receivable financing .

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