GAIN Capital (GCAP -15.8%) tumbles as the lack of action in currency markets leads to a big Q1 earnings miss.
CEO Glenn Stevens: "Trading conditions ... resulted in a challenging quarter for our retail OTC business, which muted our overall Q1 financial results."
From the conference call (transcript): On page 5 of the presentation slides is the "'picture worth 1,000 words," says Stevens. It shows the steep downward trend in currency volatility over the past 5 years, a trend - says management - that has not broken in April (though Stevens says April at GCAP was not nearly as weak as that reported at FXCM).
For now, management is focused on acquisitions (and synergies from) and diversification of revenue streams.