BEDMINSTER, N.J., Aug. 11, 2015 /PRNewswire/ -- GAIN Capital Holdings, Inc. (NYSE: GCAP, "GAIN" or "the Company") today commented on the devaluation of the Chinese currency. The Company's chief executive officer, Glenn Stevens, speaking at the Jefferies Financial Services Conference, commented that the recent devaluation of the Chinese currency, the yuan, would not have a material adverse effect on GAIN's financial results.
"Customer trading activity in yuan-related currency pairs constitute an immaterial part of our overall trading volume. Therefore, we do not expect the recent devaluation of the yuan to have a material adverse effect on our financial results," stated Mr. Stevens.
"As part of our risk management program, we take a conservative approach to managing our exposure to pegged currencies so that we are well positioned in the event of unexpected central bank policy changes, such as the People's Bank of China's (PBC) announcement last night to devalue the yuan and the Swiss National Bank's policy change earlier this year," continued Mr. Stevens. "Specifically, in the case of the yuan, we took steps to significantly limit the maximum notional size of our exposure to yuan-linked currency pairs and other products, which we believed was prudent in light of the yuan peg and the other conditions in the Chinese financial markets," added Mr. Stevens.
"We have seen increased volatility since the PBC's announcement last night, and customer trading activity has risen commensurately across multiple asset classes. As always, we will continue to actively monitor market conditions and manage market and credit risk accordingly," concluded Mr. Stevens.
About GAIN Capital
GAIN Capital Holdings, Inc. (NYSE: GCAP) provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe and the Asia Pacific regions. For further company information, visit www.gaincapital.com.
In addition to historical information, this release contains "forward-looking" statements that reflect management's expectations for the future. The forward-looking statements contained in this earnings release include, without limitation, statements relating to GAIN Capital's expectations regarding future performance. A variety of important factors could cause results to differ materially from such statements. These factors include, but are not limited to, the actions of both current and potential new competitors, fluctuations in market trading volumes, financial market volatility, evolving industry regulations, errors or malfunctions in our systems or technology, rapid changes in technology, effects of inflation, customer trading patterns, the success of our products and service offerings, our ability to continue to innovate and meet the demands of our customers for new or enhanced products, our ability to successfully integrate assets and companies we have acquired, our ability to effectively compete in the OTC products and futures industries, changes in tax policy or accounting rules, fluctuations in foreign exchange rates and commodity prices, adverse changes or volatility in interest rates, as well as general economic, business, credit and financial market conditions, internationally or nationally, and our ability to continue paying a quarterly dividend in light of future financial performance and financing needs. The forward-looking statements included herein represent GAIN Capital's views as of the date of this earnings release. GAIN Capital undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.
SOURCE GAIN Capital Holdings, Inc.