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GAIN Capital Receives Regulatory Status, Closes Series B Financing
Internet-based Foreign Exchange Trading Firm Now a Registered Futures Commission Merchant (FCM)
WARREN, NJ, October 22, 2001 - GAIN Capital, the premier source for online currency trading (www.gaincapital.com), today announced its status as a Futures Commission Merchant (FCM). The firm also announced today the close of their Series B round and receipt of funding from prominent U.S. venture funds Edison Ventures, Cross Atlantic Capital Partners, and Blue Rock Capital.
As an FCM, GAIN Capital is a member of the National Futures Association (NFA) and is regulated by the Commodity Futures Trading Commission (CFTC). FCM's are required to uphold the highest standards and business practices and are subject to strict financial and reporting requirements.
GAIN proactively sought FCM status to distinguish the firm from other market participants. "Only a handful of competing firms have the infrastructure, background, and financial strength necessary to receive regulatory status," stated Mark Galant, CEO and Founder. "GAIN's clients now enjoy the same level of confidence as investors in other U.S. financial markets."
Moreover, the NFA solicited GAIN Capital's participation in drafting the new regulatory framework. "The NFA realizes the FX market is significantly different than the exchange-based Futures markets," commented Mr. Galant. "As a result, they are seeking input from industry leaders and GAIN is pleased to be a part of the process."
New Equity Partner
With $280M under management, Edison Venture Fund led GAIN's Series B up round, with backing from Cross Atlantic Capital Partners and Blue Rock Capital.
GAIN is fully capitalized, with the additional funds earmarked for software R&D, marketing initiatives, and a wireless trading project.
"The timing of this investment is particularly significant given the current market environment," stated Mr. Galant. "With venture capital extremely scarce for e-commerce companies, our ability to secure funding, at an increased valuation, is an endorsement of both GAIN and our business model." In addition to the new commitment from Edison, both of GAIN's initial investors, Cross Atlantic and Blue Rock Capital, elected to increase their equity stake and participate in the Series B round.
"Our investment in GAIN Capital is based on three factors: the opportunity of online FX trading; GAIN's established leadership position in the space; and their proprietary trading technology," commented Bruce Luehrs, a general partner at the Edison Venture Fund and a member of GAIN's Board of Directors. "The GAIN management team is the most experienced of any firm in this space, and we welcome the opportunity to support their continued success."
GAIN Capital, founded in October 1999, offers FX traders direct access to the global Foreign Exchange (FX) market. GAIN clients benefit from 24-hour, commission-free trading at interbank spreads. GAIN revolutionized the practice of Forex trading by being the first online FX trading firm to offer its clients the ability to deal directly from real-time, streaming quotes and execute trades in less than one second. In June 2001, GAIN was named "Best Independent FX Trading Platform" by Global Finance.
For more information, please visit www.gaincapital.com.
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