PRESS

GAIN Capital Group Named "Private Company of the Year"

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Bedminster, NJ - December 7, 2006 - GAIN Capital Group, LLC. a leading provider of foreign exchange trading and asset management services for institutional and individual investors, has been awarded 2006 "Private Company of the Year" by the New Jersey Technology Council (NJTC), a private, non-profit membership organization dedicated to supporting and promoting technology companies within the state of New Jersey. 

The "Private Company of the Year" award falls into NJTC's Super Awards category. Key considerations include: being a market leader, unique product/service and strong financial performance. Past honorees include Vonage and MarketRx. This is GAIN's second award from the NJTC; in 2003, GAIN was honored as "Growth Company of the Year." 

"We are pleased to again be recognized by the NJTC," said Mark Galant, CEO and Founder of GAIN Capital Group, LLC. "For the past seven years, GAIN has been committed to providing unsurpassed technology and service to our institutional and retail forex trading clients." 

GAIN Capital has grown from a start up in 1999 into a global firm supporting clients in more than 140 countries, with monthly trade volume exceeding $100 Billion. In addition, GAIN leverages its proprietary trading platform by actively partnering with brokerage and technology firms around the globe. The firm's joint ventures with approximately a dozen third-party providers allow GAIN to offer 'best of breed' trading analytics & decision support tools along with its award-winning execution platform. To extend its distribution network, GAIN currently supports over 40 white label relationships with broker/dealers, Futures FCMs and other financial services firms in North America, Europe and Asia. These strategic white label partners now contribute approximately half of GAIN's annual revenue. 

As a result of the firm's singular focus on delivering a superior customer experience, GAIN Capital has achieved 70%+ annual revenue growth for five consecutive years (FY2000-2005) and is currently on track to achieve 90% annual revenue growth for 2006, its best financial performance since 2002. 

"GAIN's strong market position, proven business model and leading technology provide a substantial base for continued growth," continued Mr. Galant. "Moreover, our solid reputation as a principled and reliable partner within a highly competitive market is equally important to our ability to deliver cutting edge technological and product solutions." 

Earlier this year, GAIN Capital Group, LLC was named to the prestigious Deloitte 2006Technology Fast 50, Deloitte and Touche 500 and the 2006 INC 500 list of fastest growing, private companies in the United States. 

About GAIN Capital Group, LLC 

GAIN Capital Group, LLC is a leading provider of foreign exchange services, including direct-access trading and asset management. Founded in 1999 by Wall Street veterans, GAIN Capital Group is one of the largest, most respected firms in the online forex industry, servicing clients from more than 140 countries and supporting trade volume in excess of $100 billion per month. Headquartered in Bedminster, New Jersey, the company operates sales & support offices in New York and Shanghai. 

The company operates two full service web portals. FOREX.com (www.forex.com) provides individual investors of all experience levels with a full-service trading platform, lower account minimums and extensive education and training. The company's flagship service, GAIN Capital (www.gaincapital.com) focuses on the needs of professional forex traders, including hedge funds and money managers. 

GAIN Capital Group and FOREX.com are registered with the National Futures Association (NFA) as a Futures Commission Merchant (NFA ID #0339826). 

In August 2006, Deloitte & Touche LLP's prestigious Technology Fast 50 Program named GAIN Capital Group one of New Jersey's fastest-growing technology firms. In October of 2006, GAIN Capital was named to the Deloitte & Touche Technology Fast 500 as one of the Fastest Growing Technology Firms in North America and to the INC 500 list of Fastest Growing, Privately-held firms in the nation. 

About The New Jersey Technology Council (NJTC) 

The New Jersey Technology Council (www.njtc.org) provides business support, networking opportunities, information, advocacy and recognition of technology companies and their leaders. Founded in 1996, NJTC's more than 1,300 member companies work together to support their own enterprises while advancing New Jersey's status as a leading technology center in the United States. 

Currencies

Currencies: Daytraders' new thing?: Backers are calling it 'the fastest growing market in the world'
 

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Several days each week, Paul Lynch spends a few hours in front of his home computer, daytrading over the Internet. No, the 22-year old doesn't move in and out of volatile technology stocks like the notorious daytraders of the late 1990s did. Mr. Lynch, who lives in Guelph, Ont., and runs his own advertising firm, trades currencies.

"You're switching, say, U.S. dollars to euros for a number of hours. And then you're buying the U.S. dollars back again," he said. Since December, he has made a 50% gain on his original investment. Not bad, considering the Toronto Stock Exchange composite index is up just 8% this year.

Many other small investors are getting the same idea. Once the sole domain of institutional players and ultra-sophisticated investors, currency spot trading has become accessible to just about anyone with a computer and an Internet connection.

Businesses have begun offering courses and hand-holding services to retail investors who are not familiar with currency spot trading. For example, New Jersey-based GAIN Capital Group launched FOREX.com in January. Through the Web site, investors can open a "mini-account" for as little as US$250.

"We give away free demos to potential clients so that they can try out trading and see how it works," said Mark Galant, chief executive of GAIN Capital. "We're up to 1,000 demos a week now."

Similarly, New York-based Forex Capital Markets claims 35,000 retail clients and touts online currency trading as "the fastest growing market in the world."

Equity daytrading of the 1990s created similar hype, which fizzled out when the dot-com meltdown in 2000 left many investors facing ugly losses. Is currency daytrading doomed to the same boom-and-bust pattern?

By most estimates, more than US$1-trillion worth of currencies trades hands each day, making the world's foreign exchange market many times larger than the equity market.

The reason why this massive asset class has suddenly attracted the attention of retail investors has to do with the recent volatility of the world's major currencies.

In particular, the U.S. dollar has plummeted against the euro and Canadian dollar during the past 12 months. Daytraders love volatility because it gives them an opportunity to make big bucks in a short period of time.

"There is less volatility in the stock market now, and therefore less opportunity. In contrast, there has been much greater volatility in currencies," aid Dirk Morris, chief investment officer of currency at Putnam Investments.

"Our currency products aren't offered to retail clients. But I certainly see it when talking to retail brokers that there is a growing demand from the retail end of the business to get into currency trading."

Currency trading allows investors to trade with much more money than they actually bring to the table. Refco Canada, a brokerage firm, allows retail investors to trade up to 100-times their initial capital.

In other words, with just $1,000 of your own money, you can buy up to $100,000 worth of currencies on the spot market. This degree of leverage allows you to magnify your gains (and losses) 100-fold. For example, if the currency you're betting on rises 1% in a day, you can make $1,000 -- or 100% of your initial investment.

Of course, you can lose money just as fast if your bet is wrong. This is why the trend toward currency daytrading has some observers concerned that retail investors may be setting themselves up for a drubbing.

"To truly know your risk in something like this is a fairly complicated thing. The information one gets as a consumer today gives you no idea of what that risk is," said Ron Dembo, founding chairman of Algorithmics Inc., a Toronto-based risk management software firm.

Professional traders employed by big banks have been trading currencies successfully for many years. However, in most cases they are backed by colleagues stationed in offices around the world and have access to all the research tools they need.

"I've been doing it for 20 years and there are plenty of times when I lose money. And the amount of quantitative tools and research that we believe we need to consistently make money is enormous," said Mr. Morris.

Nonsense, argue retail investors and the companies that train them. They believe currency trading is simpler than trading equities. Instead of weighing the pros and cons of thousands of different stocks, investors need only look at six or so different currencies.

They also point out that the fees and commissions associated with currency transactions are much lower than with stocks. The market operates 24 hours a day and there is never any liquidity barrier to moving in and out of a particular currency because the market is so large.

Finally, they argue currency trading is safe. Since you can use stop-loss orders to automatically exit your position if the market is moving against you, your losses are limited.

The trick, they say, is to get the right education, which usually involves a brief course. "The more sophisticated professional investors tend to do better than the new clients, who have never tried this before. That's because there is a learning curve," said Mr. Galant.

Mr. Lynch learned about currency trading at a five-day seminar in Cancun. He then fine-tuned his knowledge last year with an online course (price:US$677) offered through Vancouver-based FOREX Academy.

"I'm pretty confident right now. The course teaches you to check a number of different indicators. When all those indicators are aligned and saying the same thing, that's the point when you enter the trade. About 60% of the time you get a positive trade," he said.

Will retail investors like Mr. Lynch profit from currency trading when the U.S. dollar grows less volatile or reverses direction and climbs against the euro? The pros are doubtful. The currency daytrading trend could just fade away

Bernanke

Bernanke: Economy to turn up in '09

Federal Reserve chairman says recovery will begin later this year, but there will be several more bumps in the road.

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By David Goldman, CNNMoney.com staff writer

Last Updated: May 5, 2009: 10:20 AM ET

 

NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said Tuesday that the U.S. economy is stabilizing and will begin to rebound later this year, but the recovery will be slow and cautious.

At a hearing of the Joint Economic Committee of Congress, Bernanke said consumer sentiment, the housing market and spending have begun to show signs of life.

But he expects the economy will continue to shed jobs and credit will remain tight for some time. He said the recent frugality trend will continue due to deflated household wealth, and business spending will be slow to bounce back as well.

"We continue to expect economic activity to bottom out, then to turn up later this year," said Bernanke in prepared testimony. "Even after a recovery gets under way ... we expect that the recovery will only gradually gain momentum and that economic slack will diminish slowly."

0:00 /4:47Regulators ask for more power

The Fed chief said he was encouraged by the recent rally in bank stocks, led higher by some positive earnings in the first quarter, but "substantial concerns about the banking industry remain."

Bernanke said his economic forecast hinges on a "gradual repair" of the financial system: If banks and financial conditions relapse, the economic recovery could be even more drawn out.

But Bernanke and some members of the committee believe that the regulator's actions, combined with those of the Treasury Department and the Federal Deposit Insurance Corp., have done much to help make an economic recovery possible.

"The Federal Reserve has taken an extraordinary series of measures to preserve financial stability and to restore the proper functioning of key credit markets," said the committee's chairwoman, Rep. Carolyn Maloney, D-N.Y., in prepared remarks. "How far we have come in restoring normal functioning to the financial system, and what remains to be done are key questions."

Despite trillions of dollars in credit easing and stimulus programs undertaken by the government since last September, Bernanke said he believes inflation will remain subdued for the time being. But Republican members of the panel said they were concerned that the huge increase in the Fed's balance sheet will create an untenable situation by the end of the year.

"Has the pendulum swung too far, Mr. Bernanke? When will the Fed admit the current fiscal costs are simply unsustainable?" asked Rep. Kevin Brady, R-Texas. "The Fed expanded its balance sheet by 127%. What's the Fed's exit strategy?"

Last week, the Fed said that it believes the U.S. economy continues to grow worse, but the pace of decline has slowed and the outlook has improved. At the conclusion of its two-day meeting, the rate-setting Federal Open Markets Committee noted that financial market conditions have improved "modestly," since last month. As a result, it kept its interest rate target in a range between 0% and 0.25%. 

Forex News

Forex − Tentative calls for a bottom fail to convince the broader market

Forex News And Events:

U.S retail sales weakened by 1.1% Y/Y yesterday which sent U.S stock markets lower. While a recovery in the U.S economy could be too early to call, some say the Stock markets will be ahead of the curve on this as economic data is backward looking. While many analysts are calling EURUSD long and a return of risk appetite we see a return of risk averse trades pushing the Yen and dollar higher. Volatility has made a comeback as we settle into broad ranges which we will only break out of once we have a firm grip on the direction of the global economy.

Focus now is on how currencies will price the earnings and economic data to come, however sentiment will be a very big factor to this – the dollar remains a firm choice for a haven but waning demand and strong risk appetite could reverse this momentum. In terms of the EURUSD we don’t see a turn around in the broad bear trend before we re-test 1.2600 – 1.2500 levels (historic fair-value). We have highlighted this on our graph.

Ahead today, CPI for march is due at 12:30 GMT and the market expects an increase of 0.1% compared with 0.4% in February. Other releases include the TIC report for February, the NAHB housing market index for April and the Fed’s Beige Book.

Today's Key Issues (Time In GMT):

12:30 USD Consumer Price Index (MoM) 0.1% vs. 0.4%

12:30 USD Consumer Price Index (YoY) -0.1% vs. 0.2%

12:30 USD Empire Manufacturing -35.00 vs. -38.23

13:00 USD TIC Flows 10.0B vs. -43.0B

18:00 USD Fed’s Beige Book.

The Risk Today:

EurUsd Broad bearish trend resumes (momentary lapse in corrective bull) and even gains momentum as risk appetite wanes on weaker U.S retail sales. Initial resistance stands at 1.3335 (early April head-shoulder neckline) then 1.3395 (recent April 13th high). 1.3459 is the crucial intersection between the broad trend’s (see graph) upper extremity and week’s end on the 17th, any test of this level would constitute a break from the current broad trend. On the downside we see an initial support at 1.3207 (61.80% retracement on 1.3089 – 1.3395 move) which sets the stage for 1.3118. Long term view sees the pair heading for 1.2500 – 1.2600 territory before a sustainable turnaround in the broad trend.

GbpUsd We are looking at a 4 figure range contained within 1.4963 and 1.4587 (recent double highs and lows of April). Rally started April 12th culminates at 1.4955 which is out initial resistance. On the downside, 1.4818 (38.20% retracement) sets the tone for 1.4777 support which in turn allows us to target 1.4606 low on April 12th. Return to risk averse trades would push the dollar higher as it’s haven status persists however a test higher isn’t to be discounted as we see Sterling resist recent dollar moves.

UsdJpy Pair fails on 61.80% retracement support line at 98.09, 98.41 stands as initial soft support, while a break below the 61.80% level would aim for March 30th low of 95.96. On the upside resistance comes at 99.40 but a test at 100.77 would allow us to retest recent highs at 101.53.

UsdChf Recent high of 1.1451 is a level tested for the second time in 2 days and stands as strong initial resistance. On a more fundamental note the SCB is rumored to be planning intervention this could reassert the bullish nature of the pair – the greenback’s haven status outshining the Swissy’s for the time being. Initial support stands at 1.1414 with a strong floor in the 1.1391 area.

Resistance And Support:

EURUSD	GBPUSD	USDJPY	USDCHF
1.3459	1.5000	101.53	1.1625
1.3395	1.4963	100.77	1.1521
1.3335	1.4955	99.40	1.1451
1.3259	1.4952	98.96	1.1414
1.3207	1.4818	98.41	1.1414
1.3118	1.4777	98.09	1.1391
1.3089	1.4606	95.96	1.1355

S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot

Asian

Asian markets rose, China slowest growth in decade, USD rise slightly against majors

FXstreet.com (Barcelona) - Asian stocks markets have risen today after fast finish pace on Wall Street yesterday and China's GDP is seeing in a confidence view despite the lowest pace in a decade. GBP/USD has fallen below 1.5000 level, EUR/USD is trading below 1.3200, USD/JPY is testing the 98.85 support level and USD/CHF

China GDP rose 6.1% in the first quarter in 2009 from the same period last year, after 6.8% YoY last quarter 2008.

Japan's Nikkei closed up 0.14%, South Korea's Kospi Composite 0.3% higher, Taiwan index were up 2.1%, Hong Kong's Hang Seng Index was up 0.15% and S&P/ASX 200 rose 0.75%.

EUR/USD is falling 0.29%, from today's opening price at 1.3226 to the currently 1.3186. GBP/USD falls 0.13% to trade around 1.4975/85, USD/JPY has fallen 0.50% to be traded below the 98.85 level and the USDCHF is rising 0.15% above 1.1450.

DATA SNAP

DATA SNAP: UK BRC Mar Same-Store Retail Sales -1.2% On Yr

LONDON (Dow Jones)--U.K. retail sales fell again in March, despite recent signs of growing consumer confidence and housing market stabilization, indicating ahead of next week's budget that the government's value-added tax cut has failed to boost spending. 

That spells bad news for Prime Minister Gordon Brown's government, which put a 2.5-percentage-point cut in VAT at the center of its GBP20 billion November stimulus plan. 

Data Thursday from the British Retail Consortium showed March's same-store sales values fell 1.2% on the year, while total sales values - including those in new store space - were up 0.6%. In February, same-store sales fell 1.8% and total sales rose 0.1%. 

While food and clothing sales values rose on the year, most sectors saw like-for-like sales down from a year earlier, the BRC said, cautioning that the timing of Easter made year-on-year comparisons difficult. 

The March figures were slightly better than expected, as economists surveyed by Dow Jones Newswires last week had forecast total sales to decline 1.4% on the year. 

"Customers are still worried about their jobs and their own finances - so they're keeping spending under tight control," said Stephen Robertson, director general of the BRC. "We've now seen negative sales in nine of the past 10 months." 

The latest BRC report will intensify debate about the precise state of the U.K. consumer amid an increasingly severe recession. 

A series of stronger-than-expected official retail sales reports raised questions about the resilience of the U.K. consumer. But the March BRC numbers chime better with the 0.7% decline in household expenditure in the fourth quarter, the biggest quarterly drop in consumer spending since 1991. 

The U.K. economy is in recession, having contracted 0.7% in the third quarter and 1.6% in the fourth quarter, its weakest performance since 1980. In response, the Bank of England has cut its key interest rate from 5% in early October to 0.5%, the lowest level since the central bank was founded in 1694. 

The BRC also reported that in the three months to March, like-for-like sales were down 0.7% from a year earlier. Total sales in the latest quarter from a year earlier were up 1.2%. 

Helen Dickinson, head of retail at KPMG, said the survey highlighted the need to "remain cautious in drawing conclusions about the prospects for retail spending." 

   The BRC survey covered the four weeks from March 1 to April 4.       BRC Web site: http://www.brc.org.uk   

-By Joe Parkinson, Dow Jones Newswires; 44 20 7842 9291; joe.parkinson@dowjones.com 

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ZoEQ9VJtYzxGsJmjLFOE1Q%3D%3D. You can use this link on the day this article is published and the following day. 

GLOBAL MARKETS:

GLOBAL MARKETS: European Stocks Seen Up; Global Rally Ongoing

Thu, Apr 16 2009, 06:29 GMT
http://www.djnewswires.com/eu

GLOBAL MARKETS: European Stocks Seen Up; Global Rally Ongoing

     By Andrea Tryphonides     Of DOW JONES NEWSWIRES   

LONDON (Dow Jones)--European stocks are expected to open higher Thursday after a strong finish on Wall Street Wednesday and a rally in Asia as China's GDP was seen in a favorable light, helping foster the idea a recovery may not be far away. 

Matt Buckland, dealer at CMC Markets said the Chinese GDP data "could have been worse," which will add to the European session's strength after it provided a boost to the major indexes in Asia. 

Buckland called London's FTSE 100 index up 29 points, or 0.7%, at 3997.0, Frankfurt's DAX index up 42 points, or 0.9%, at 4591.0 and the CAC-40 index in Paris 28 points, or 0.9%, higher at 3014.0. 

China's first quarter gross domestic product data were also encouraging - if not as much as some speculation had hoped. GDP grew 6.1% on the year, slightly better than the 6.0% tipped in a Dow Jones Newswires poll of economists, while first quarter urban fixed-asset investment rose 28.6% on the year, above the 26.5% forecast. 

"To me the Chinese numbers were largely expected," said Chris Weston, institutional dealer at IG Markets. "However the numbers did not fall off a cliff and generally show a bottoming process in their economy," he said. 

As a result, Asian share markets were mostly higher, with Japan's Nikkei 225 closing up 0.14% and South Korea's Kospi Composite 0.3% higher. Taiwan shares were up 2.1% and Hong Kong's Hang Seng Index was up 0.3%, climbing up from earlier lows. 

Still, "earnings news from JP Morgan stands to keep the banking sector in focus too and could well produce further volatility," Buckland warned. 

In the U.S. Wednesday, stocks surged and the Dow Jones Industrial Average closed more than 100 points higher as investors concentrated on signs of a turn in economic demand in comments from International Paper, Intel and in federal government data. 

Stocks added to gains after the Federal Reserve's regional report, or Beige Book, showed that while consumer spending remained generally weak, some districts reported that sales rose slightly or declines moderated. 

The DJIA rose 1.4% to 8029.62 and the broad Standard & Poor's 500 index rose 1.3% to 852.06. The Nasdaq Composite rose 0.1%, weighed down by Intel, which warned it expects second-quarter revenue that is flat to slightly lower than the first-quarter level. Still, Intel said the personal-computer market was likely past its worst. 

In the foreign exchanges, the dollar slipped against the yen. Analysts said that although the China GDP figure was slightly better than some forecasts, currency players had been factoring in a stronger figure and so the greenback was sold in favor of the yen, perceived as a less risky play. 

At 0620 GMT, the U.S. dollar stood at Y98.98, from Y99.46 late in New York, and the euro at Y130.64 versus Y131.56. The single currency was at $1.3205, from $1.3225. 

The positive tone in the equity markets has resulted in a move away from the perceived safe haven of sovereign debt, and at 0625 GMT the June bund contract stood at 122.67, down 0.27. 

Meanwhile, the front-month Nymex crude oil futures contract was up 49 cents at $49.74 a barrel, after slipping 16 cents in New York. Spot gold was down only $1 from New York, at $892.10 a troy ounce. 

In economic news, the euro-zone consumer price index is expected at 0900 GMT along with industrial production. In terms of individual stocks, Groupe Danone will be in focus after it reported a 2.3% fall in first-quarter revenue, held back by weaker consumer spending in dairy. And Roche Holding AG reported a 7% increase in first-quarter revenue, driven by brisk sales of its portfolio of cancer drugs. 

-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com 

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=YMoVESPZ%2BrZ15kVS1YhILg%3D%3D. You can use this link on the day this article is published and the following day.