GAIN Capital Marks One-Year Anniversary, Announces Record Growth, Heightened Retail & Institutional Interest.

Business Editors

WARREN, N.J.--(BUSINESS WIRE)--June 11, 2001

Internet-Based Forex Trading Service Seeks Registration With The

CFTC 

GAIN Capital, the premier source for online currency trading (www.gaincapital.com), today announced significant increases in both customer acquisition and trade volume, in conjunction with the one-year anniversary of the firm's Internet-based service. In addition, GAIN Capital is formally seeking registration with the Commodity Futures Trading Commission (CFTC) to become a regulated financial entity, as a Futures Commission Merchant (FCM).

Mark Galant, GAIN's CEO and founder, commented: "During the past year, we've experienced firsthand a tremendous increase in the interest towards trading currencies online." During the last six months, GAIN's client base increased an average of 35% per month, tripling between Q4 2000 and Q1 2001. Quarterly trade volume more than quadrupled during that same period.

Galant attributes the rapid growth to the substantial benefits electronic trading offers GAIN's target market, which includes small- to mid-sized institutions -- such as professional money managers, hedge fund traders, and Commodity Trading Advisors (CTA's) -- as well as retail speculators. "GAIN's client base trades FX as an asset class, and have specific needs that are best met through an electronic platform," said Galant. "Their requirements include 24-hour trading capability, aggressive pricing, fast execution, and real-time information, all with minimal or no transaction costs. GAIN's service is uniquely positioned to meet the needs of this group."

Seeking FCM status

GAIN Capital is seeking registration with the Commodity Futures Trading Commission (CFTC) to become a Futures Commission Merchant (FCM). "GAIN fully supports regulatory oversight of the Foreign Exchange markets," stated Galant. "We feel it is especially imperative at the retail level, which is arguably the fastest growing segment of the FX market. Regulation allows credible U.S. firms to distinguish themselves and, perhaps more importantly," continued Galant, "gives smaller investors the same level of confidence dealing in the Forex market that they enjoy in the US equity and futures markets."

Launched on May 31, 2000, GAIN pioneered the concept of one-click dealing from real time, streaming quotes in a market dominated by Request for Quote (RFQ) pricing. "GAIN was the first online forex provider to provide this level of price transparency and speed of execution," said Galant. "Other firms are just now introducing similar pricing and execution methods, and I fully expect it to eventually become a market standard for electronic FX trading," he added. GAIN has been honored as an innovator in the marketplace, and was recently named "Best Independent Online Foreign Exchange Trading System" by Global Finance magazine.

GAIN Capital, founded in October 1999, began live trading in May 2000 to offer institutional and individual investors direct access to 24-hour, commission-free Forex 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 FX trades in less than one second.

For more information, please visit www.gaincapital.com.