StoneX Quarter 1 foreign exchange income increased significantly after the acquisition of GAIN Capital.

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Recently, the predecessor of StoneX Group INTL FCStone, has released its financial results for the first quarter of the fiscal year 2021, as of December 31. This is the company's first full quarterly performance after acquiring GAIN Capital.

The results are impressive. Operating income increased by 37% year-on-year, reaching an absolute figure of US$380.1 million. In addition, quarterly net income increased to $19.5 million, an increase of 20%.

Foreign exchange and CFD business brought by GAIN Capital

The company's foreign exchange and CFD business is booming, especially with GAIN Capital as a subsidiary. Operating income from foreign exchange and CFDs jumped from 4.6 million US dollars in the three months of the same period last year to 59.8 million US dollars.

Trading activities in foreign exchange and CFD instruments have increased significantly during these three months. The average daily transaction volume is US$10.69 billion. In August last year, StoneX completed the acquisition of GAIN Capital at a price of 36 million U.S. dollars and planned to merge its business in the UK. However, the parent company is now planning to reduce its exposure to the British pound in the gaining subsidiary. To this end, StoneX increased the dollar balance in its subsidiaries and used derivative product transactions to mitigate the remaining pound risk. At the end of the quarter, the company confirmed an unrealized loss of $3.7 million in these derivatives.

StoneX CEO Sean M. O'Connor commented on these figures: The first quarter is a solid start for the new fiscal year, despite the overall trend volatility and a significant reduction in interest rates, we Revenues and departmental revenues of all departments showed growth. We also see strong growth in the number of customers, new customer activity and customer flow; we have made good progress in integrating Gain Capital, including achieving cost synergies, and are actively developing opportunities for revenue synchronization.

Reprinted from Wikifx, the copyright all reserved by the original author.