FOREX-Yen hits 7-wk peak on Japan vote, China stocks

TOKYO, Aug 31 (Reuters) - The yen hit a seven-week peak against the dollar on Monday as short-term players chased it higher following a thumping win for the opposition Democratic Party in Japan's election, breaking chart supports for the greenback.

The yen edged up after the landslide election victory on Sunday, and then gathered pace as automatic dollar sell orders were triggered close to 93.00 yen per dollar, traders said.

Falling Chinese shares also prompted investors to buy the yen and sell other currencies perceived as risky, including higher-yielding Australian dollar.

But traders were cautious about lifting the yen too high too quickly with uncertainty about the leadership of the new Japanese government still hanging and with the London market closed on Monday for a bank holiday.

"There were a few stale longs liquidated this morning, with dollar/yen and euro/yen selling," said a senior trader at a European bank in Hong Kong.

"Shanghai being down 5 percent has muddied the picture as well as to whether it's a reaction to the election victory or risk aversion. It's probably a bit of a combination of both."

The dollar fell around 1 percent to 92.54 yen JPY= on trading platform EBS, its weakest level since mid-July. The euro also dropped 1 percent to 132.44 yen EURJPY=R and edged lower 0.1 percent to $1.4287 EUR=.

Traders said dollar/yen had broken chart levels around 93.00, triggering stop losses around 92.90, after Japanese exporters sold the dollar to repatriate overseas earnings at the month-end.

Japan's Nikkei share index .N225 slid in volatile trade from an 11-month high hit after the Democrats' election win.

China's benchmark stock index extended losses and fell over 5 percent.SSEC after losing 2.9 percent on Friday amid worries about a steep drop in Chinese bank lending in August.

NEW GOVERNMENT UNCERTAINTY

Investors are now waiting to see what policies the new Japanese government will follow and how it will differ from the old.

The Democrats' leader, Yukio Hatoyama, has said he would not name a cabinet until the new parliament had voted him in as prime minister but he is expected to set up a transition team quickly. [ID:nT356076]

"The yen's firmness has been helped by hopes for a change, but how the DPJ-led government will work is unclear so the impact may not last too long," one senior trader for a Japanese bank said.

Democratic Party officials have said they would respect the independence of the Bank of Japan and are unlikely to intervene to weaken the yen, maintaining Japan's five-year absence from currency markets. [ID:nPOLJP]

"There will be ups and downs in the dollar/yen ranges but we have to wait and see the new cabinet, especially who will take the finance minister's position," said a trader from a European bank in Tokyo.

Traders and analysts in bond, stock and foreign exchange markets surveyed by Reuters on Monday said dollar/yen is likely to be at 95 yen at the end of March 2010 after trading at 92.50 yen at year-end. [nTKF106564]

Japan's industrial output rose in July, marking its fifth straight monthly increase, as exports recover on the back of stimulus spending around the world.[ID:nECONJP][JPIP1=ECI]

But market reaction was muted as traders paid stronger attention to flows related to month-end that came just after the data release.

(Additional reporting by Wayne Cole and Anirban Nag, Charlotte Cooper and Kaori Kaneko in Tokyo; Editing by Joseph Radford)

UPDATE 1-Forex.com parent seeks $125 mln in IPO

NEW YORK, Aug 31 (Reuters) - Gain Capital Holdings Inc, an online provider of retail foreign exchange trading services, is planning to raise up to $125 million in the public markets, according to a regulatory filing on Monday.

Gain Capital, based in Bedminster, New Jersey, operates the forex.com website which, for the six months ended June 30, averaged 1.3 million unique visitors per month, according to an initial public offering prospectus filed with the U.S. Securities and Exchange Commission.

Gain Capital, which was founded in 1999 by Wall Street traders, said in the filing that 56.7 percent of its clients were based outside the United States, including until last year China, which in December 2008 represented 26.8 percent of its clients and about 11.6 percent of total trading volume.

But the company abruptly abandoned the Chinese market in December after a regulatory review by the government there, and its revenues fell.

For the six months ended in June 2009, Gain Capital's net revenues fell 12.2 percent from a year earlier to $77.8 million, with a net loss of $48.7 million. The company had net income of $135.3 million in the year-ago period.

According to the filing, Gain Capital had to leave the Chinese market after regulators in 2008 found it did not have a license to provide retail foreign exchange trading services to Chinese residents through the Internet. The company said in the filing it did not know such a permit to exist.

All of the IPO's proceeds will go to Gain Capital's existing shareholders, a potential impediment to investor interest in the offering, given a preference to see IPOs used at least partially to fund company growth.

The foreign exchange company has arrangements with three prime brokers -- Deutsche Bank (DBKGn.DE) , Royal Bank of Scotland PLC (RBS.L), and UBS AG (UBSN.VX) -- to provide liquidity to its clients, it said.

The IPO will be led by Morgan Stanley and Deutsche Bank Securities.

Gain Capital plans to list its shares on Nasdaq.

(Reporting by Phil Wahba; Editing by Richard Chang, Phil Berlowitz)

Sri Lanka says forex reserves hit record $3.9 bln

COLOMBO, Aug 28 (Reuters) - Sri Lanka's central bank on Friday said its foreign exchange reserves hit a record $3.9 billion after it received its share of a $250 billion International Monetary Fund allocation.
That is enough to fund more than 4 months of imports, and surpassed the previous record of $3.56 billion.
The IMF on Aug. 13 approved a plan to boost member countries' reserves by $250 billion through a one-time allocation of special drawing rights, or SDRs.
SDRs are the IMF's internal accounting unit, based on a basket of currencies, which can be exchanged for hard money.
Sri Lanka's share, which is separate from a $2.6 billion IMF loan approved in July, amounted to $475 million. "With the renewed investor confidence and the continuation of a steady increase in foreign exchange inflows, the country's external reserves position is expected to strengthen further in the coming months," the central bank said in a statement.
The central bank did not give a new forecast, but Central Bank Governor Ajith Nivard Cabraal has forecast reserves of $5-6 billion over the next 20 months. [ID:nCOL488027]
A single U.S. fund last week bought up $875 million in government securities, boosting reserves by a third.
The country had record high reserves of $3.56 billion by August 2008, pushed up by foreign purchases of government securities that were yielding over 17 percent.
But by year's end, they had plummeted by half with the central bank defending the rupee against depreciation and the withdrawal of more than $600 million after investors cashed in government securities as global financial markets crashed.
Those factors prompted Sri Lanka to reverse political course and pursue IMF assistance. (Reporting by Ranga Sirilal; Editing by Bryson Hull)

Amex tailors forex services to SMEs

American Express has started offering foreign currency payment services to small and medium sized businesses (SMEs) in New Zealand.
Up until now the currency payments business has been dominated by banks but American Express hopes to fill a niche where it believes the foreign exchange requirements of SMEs are often overlooked.
"Clearly this space is dominated by the banks but we feel that there is room for a player who can offer a personalised round-the-clock and very competitive service as opposed to the general one size fits all approach of the major banks," says Barry Fletcher, head of sales international payments for Australia and New Zealand.
The company is best known for its credit cards but its business also extends to business travel, traveller's cheques and foreign exchange.
With its FX International Payments (FXIP) division, businesses will be able to use foreign exchange services such as telegraphic transfers, drafts and cross currency payments.
As part of the move, American Express says it will waive fees for single transactions over $US10,000 and any transactions under that will cost just $10.
Fletcher says its service draws on the company's global buying power which gives it access to competitive wholesale rates.

He says New Zealand's SMEs are similar to Australia in terms of handling foreign exchange. A recent study there showed that only 5% of small businesses and 25% of medium size businesses had a good understanding of their foreign exchange requirements
"The vast majority therefore, were not managing that very important part of their business effectively, they were missing opportunities and no doubt costing them money," he says.
The company says the service is open to all businesses regardless of whether they hold an American Express card.

Frutarom Q2 profit, sales slip on downturn, forex

JERUSALEM, Aug 27 (Reuters) - Israeli Frutarom Industries Ltd reported a 16 percent fall in quarterly net profit, saying the global downturn hurt sales as did a stronger dollar against European currencies and the shekel.
Sales were hurt mostly in the United States and Europe, the world's seventh-largest flavours and specialty fine ingredients company said on Thursday.

It posted April-June net profit of $10.1 million, or 17 cents per diluted share. Sales fell 20 percent to $107 million.
Lower expenses and costs helped to maintain profitability, while the company continued to invest in research and development, it said.
Frutarom's three acquisitions so far in 2009 -- Oxford in Britain, FSI in the United States, and the Savory activities of Christian Hansen in Germany -- contributed $5.6 million in second-quarter sales.
President and chief executive Ori Yehudai reiterated a forecast that Frutarom will double its sales in the next four years to reach $1 billion by 2012.

(Reporting by Steven Scheer; Editing by Dan Lalor)

"Ethical" forex broker calls for currency levy

LONDON, Aug 27 (Reuters) - A new British foreign exchange broker on Thursday urged peers to help raise billions of pounds for charity as it vowed to donate part of each transaction to fight AIDS, tuberculosis and malaria.
Ethical Currency's call comes as UK financial regulators raise the spectre of taxing financial transactions to help curb excessive banker pay, after the near collapse of the global financial industry last October, and G20 finance ministers prepare to meet in London next week. [nLQ42626] [nLR615953]
Inspired by the late Nobel prize-winning U.S. economist James Tobin, who called for a tax on financial flows to pay for development, Ethical Currency said it would voluntarily donate 0.005 percent of all deals to charity.
"Ethical Currency has effectively adopted the tax voluntarily, but the organisation's founders believe that it should be introduced as a Currency Transaction Levy," said foreign exchange trader and founder Alastair Constance.
"Campaigners have estimated that a tax levied at 0.005 percent would raise up to 35 billion pounds ($57 billion) a year -- enough to enable the G7 countries to meet their commitment at the Gleneagles summit in 2005 to double global aid."
Critics of such levies on transactions argue that without global agreement and coordination, money will simply move to economies that do not impose any.
"We expect governments to initially face major resistance from the financial sector, but over time, it would barely be noticed," said Constance.
Ethical Currency is not alone in donating to charity. Activist hedge fund The Children's Investment Fund (TCI), part of an industry that faces widespread criticism for its role in short-selling banking shares, pay hundreds of millions of pounds to its childrens' charity. (Reporting by Kirstin Ridley; Editing by Rupert Winchester)

China Liberalizes Foreign Exchange for Overseas Investments

In April 2009, the Ministry of Commerce ("MOFCOM") promulgated a new regulation, Measures for the Administration of Overseas Investment (the "Circular"), which simplified the application process for overseas investments by Chinese companies. "The new rule can help facilitate investment trade and support qualified companies to venture globally," according to a statement by the foreign exchange regulator.

Recession cuts placements of foreign-exchange students

 The economic downturn in the U.S. has had an effect on the placement of foreign-exchange students in American homes, according to a Michigan representative of an exchange-placement organization. "In all this time we have never worked so hard to find host families," said Rodney Kelsey, who has worked with the STS Foundation for 35 years. Kelsey said families may be overestimating the financial obligation of hosting; students require three meals a day and places to sleep and study.

Pak forex bid with hawala mop-up move

JEDDAH - Pakistani expatriates will get a swifter money transfer option through a Pakistani government project to raise foreign exchange, which is set for launch worldwide Aug. 21.
Currently it takes at least 72 hours for Pakistani expats to bank-transfer money to Pakistan. In the government’s project involving the State Bank of Pakistan, it will take only 24 hours to make a remittance, Federal Minister for Overseas Pakistanis Muhammad Farooq Sattar told Saudi Gazette in an interview.
Speedy, hassle-free service apart, the project is an attempt to steer Pakistanis abroad away from resorting to the unofficial and illegal “Hundi” or “Hawala” system that has long been well entrenched with cash collection points worldwide and delivery links to nearly everywhere in Pakistan.
The “Hawala” system effectively deprives Pakistan of scarce foreign exchange reserves at a time when the country’s economic growth remains anemic. On Aug. 7, the International Monetary Fund, approved a $3.2 billion increase to a $7.6 billion loan sanctioned last year to help Pakistan through its economic hardship. In the week ended Aug. 8, the country’s foreign-exchange reserves rose to $11.846 billion, about a third below its record high of $16.5 billion in Oct. 2007.
Sattar said the speed-cash project is a way for Pakistanis round the globe to help build the country’s Forex reserves, by avoiding the Halawa system.
“For example, the remittances from the UK through the banking system are $400 million and through the illegal channels it is $3 billion,” Sattar said.
“Our aim is to fill the gap and curb this (Hawala) practice.”

Foreign currency trading online tricky, so do your research

Saturday, August 15, 2009

Are you being enticed to trade foreign currency online?
It's tempting — particularly since the U.S. dollar isn't worth much these days.
Foreign currency exchange rates represent the cost to exchange one country's currency for another country's currency. Right now, for example, the euro is worth a lot more than the U.S. dollar. But getting into this type of trading can prove risky. If you attempt it, do it with assets you can afford to lose.
Also, it's riddled with fraud.
There are significant differences between trading currencies and trading stocks.
For one thing, Larry Dyekman, spokesman for the National Futures Association, says there's no central clearinghouse for foreign exchange trading. It's all done on different trading systems via over-the-counter exchanges.
This can mean less regulation and possible conflicts of interest.
"You need to know if the firm you're doing business with is registered with the Commodity Futures Trading Commission and a member of the National Futures Association," he warns. Search data bases (www.nfa.futures.org and www.cftc.gov) for complaints and disciplinary actions.
Registration with those agencies may help you get some recourse if anything goes wrong. It also means the companies you invest with are at least audited.
Dyekman says there are 17 foreign exchange dealer members of his self-regulatory agency, funded by the industry.
Watch for "solicitors," or people who want you to do business with other foreign currency exchange firms. There may be no regulatory requirements covering them, Dyekman says.
So you had better determine with which company they're going to be trading your money, and research those.
Most of the problems with foreign exchange trading, according to Dyekman, involve promotional material and sales practice violations. "These firms are not being truthful in balancing the risk of losing money against the opportunity to earn money," he says. They might tell you you can earn 20 percent on your investment, but fail to balance that with the fact that it can lose money very quickly.
Some companies charge a per-trade commission. Others charge by widening the difference or "spread" between the bid and ask prices they give customers. Yet others charge both. So, if you take a stab at this type of investing, know how you will be charged.
Consider that you're competing with heavy hitters, such as banks and insurance companies. Trading systems could break down, and margin or leverage can expose you to greater risk.
"A system failure may result in the loss of orders or order priority," the Commodity Futures Trading Commission says.
If anything goes wrong it could be tough getting a refund. Many companies offering online trading are located outside the United States.
At least one heavy advertiser locally has been Forex.com, a division of GAIN Capital Group, Bedminster, N.J.
Last May, the Commodity Futures Trading Commission ordered Forex.com to pay David H. Ni more than $22,231. It cited a violation of a section of the Commodity Exchange Act dealing with willfully deceiving or cheating a customer. The National Futures Association reports that Forex.com's parent, GAIN Capital Group LLC, also was fined $100,000 for a June 2007 sales practice violation.
In the Ni case, GAIN Capital Group, in a statement, said it respectfully accepts the CFTC's decision, but maintains its firm conducted "no wrongful act or omission." A spokeswoman noted the older sales violation was minor, and GAIN Capital Group, in relation to much of the foreign exchange trading industry, has a clean record.

Gammon Gold posts 2Q loss on forex changes

HALIFAX, Nova Scotia -- Gammon Gold Inc. posted a second-quarter loss Thursday as fluctuations in foreign currency exchange rates weighed down the Halifax, Canada-based mining company's results.
Gammon said it lost $7.6 million, or 6 cents per share, for the three months ended June 30. That compares with a restated profit of $4.8 million, or 4 cents per share, during the same period last year.

The results included a $7 million foreign exchange loss due to the strengthening of the Mexican peso and Canadian dollar versus the U.S. dollar.
Revenue from mining operations slid 33 percent to $43.3 million from $64.6 million.
Analysts surveyed by Thomson Reuters expected profit of 6 cents per share on revenue of $44.1 million. Those estimates usually exclude one-time items.

During the quarter, Gammon said it produced 31,115 ounces of gold, 1,083,471 ounces of silver - or 47,123 gold equivalent ounces. Using a long-term gold-to-silver ratio of 55:1, gold equivalent production was 50,814 ounces.

Production in Mexico at its Ocampo mine was in line with first-quarter levels, while production at its El Cubo mine was hampered by a seven-week labor strike, the company said.
It said it recruited more than 100 new miners at Ocampo's underground operations. And a $12.3 million, 123,000-meter exploration program at Ocampo remains on target, with 72,822 meters drilled in 397 holes at the end of July.
The company said it repaid $15 million of a term loan on July 2.
Shares of Gammon slid 1 cent to $6.37 in late morning trading.

Dorel Industries says foreign exchange losses eat into second-quarter profits

MONTREAL — Dorel Industries Inc. (TSX:DII.B) says foreign exchange losses drove down its profits to US$24.8 million in the second quarter as the consumer products maker' revenue sagged 7.2 per cent largely because of currency fluctuations.

The Montreal-based company, which makes child car seats, home furniture and bicycles, reported Wednesday that its profit amounted to 74 cents per share, down 21 per cent from US$31.3 million or 94 cents per share a year earlier.

Dorel booked US$12.6 million in non-cash losses on mark-to-market foreign exchange contracts. Excluding those losses,the company said earnings would have totalled US$1.01 per share

Dorel, which reports its results in U.S. currency, said lower sales and the impact of foreign exchange fluctuations drove quarterly revenue down to $551.1 million from $593.7 million a year ago.

"For the second consecutive quarter we have surpassed our internal earnings forecasts due to the implementation of stringent cost constraint measures, a focus on working capital management and a more stable cost environment," Dorel president Martin Schwartz said in a statement.

"While sales are down, a significant percentage of the decrease is attributable to foreign exchange translation. High-end bicycle sales are still not where we want them to be as consumers remain selective in their discretionary spending. Overall, our divisions are performing well notwithstanding the challenging economy."

The company's shares started the trading day up 25 cents to $27 on the Toronto Stock Exchange.

Foreign exchange tips issued

Britons exchanging money to spend overseas have been issued tips on how to get the best deals.

The Times is offering guidance on using foreign exchange services, which may be of interest to expats.

Tips from the paper include buying currency ahead of international travel as this allows more time to search for the most affordable options.

The publication advises against visiting some bureau de change outlets, which can charge hefty commission fees.

Looking online for foreign exchange providers is recommended because companies often send currency directly to homes, while they also tend to offer good deals.

"The best currency rates tend to be available online," said the paper.

"You can order your currency over the internet and have it delivered to your door for convenience."

In addition, the publication discouraged Brits from withdrawing foreign currency from via their credit cards as this may attract high interest rates.

Meanwhile, the United Nations World Tourism Organisation recently stated that favourable foreign exchange rates may lead to more Brits making exchange transactions beyond the eurozone.

Click here to find out how much you can save with HiFX's Foreign Exchange services.

By John Mills

FOREX-Dollar inches lower vs high-yielders after Fed

TOKYO, Aug 13 (Reuters) - The dollar slipped on Thursday after the Federal Reserve painted a less gloomy outlook for the U.S. economy but also said rates would remain low for a while, an assessment that led investors to return to commodity-linked currencies.
The Fed said it would slow the pace at which it buys Treasuries by extending the duration, but not the size, of its $300 billion programme to buy long-term government securities. [ID:nN1272730]
The U.S. central bank kept interest rates near zero and said they would likely stay there for an extended period, which dealers said scaled back market speculation that the Fed might raise rates soon.
"The Fed move basically did not have enough impact to alter the market trend of funds flowing into riskier assets," said Kazuyuki Kato, treasury department manager at Mizuho Trust & Banking.
"The prospect that the Fed will keep rates low will likely be one factor causing dollar weakness in the long term," he said.
Primary dealers polled by Reuters do not expect the Fed to raise rates until 2010 at the earliest, with four banks seeing a hike in the first half and seven in the second half. [FED/R]
The euro rose 0.3 percent from late U.S. trade on Wednesday to $1.4227 EUR=.
Higher yielding currencies such as the Australian and New Zealand dollars also rose, extending gains made the previous day after rebounding from steep losses.
The Aussie was up 0.3 percent at $0.8364 AUD=D4, having fallen as low as $0.8180 on Wednesday, while the kiwi advanced 0.3 percent to $0.6736 NZD=D4.
A trader at a European bank said the market had generally taken the Fed's statement as dovish, which was broadly positive for risk and negative for dollar.
"But equity markets still don't look like they have that much steam behind them so people are cautious about piling into risk trades at the moment," he said.
Asian share markets gained on Thursday but many are still largely unchanged so far in August and remain below recent 2009 peaks. The Aussie and kiwi are also sitting just below their highs for the year scored earlier in the month.
DOLLAR/YEN RANGE
The dollar was steady at 96.08 yen JPY= but below last week's eight-week high of 97.79 yen.
Traders said the U.S. currency's upside against the yen seemed to be capped due to talk of Japanese investors repatriating funds related to $27 billion in coupon payments on U.S. Treasuries due on Aug.15. In addition, $61 billion in coupon securities mature on the same day.
Analysts said that while sentiment towards riskier assets had improved there was a general degree of caution on the Fed's move to extend the time frame of asset purchases as it indicated the economy was still vulnerable.
"I guess that leaves its options open just in case the improved economic outlook turns out not be blemish free," said David Watt, a senior currency strategist at RBC Capital. "The Fed is strategically taking a middle road with the BoE on one wing and Norges Bank on the other."
The Bank of England struck a dovish note on Wednesday, saying it might consider cutting the rate it pays on bank reserves in a bid to encourage them to lend more funds. Last week it said it was pumping in an additional 50 billion pounds by buying assets with newly created money.
In contrast, Norway's central bank held rates at a record low but opened the door for increased borrowing costs sooner than expected as the economy continued to recover.
Now the Fed meeting is past, investors are looking to data for trading incentives.
U.S. retail sales for July are due at 1230 GMT and economists in a Reuters survey expect a 0.7 percent rise, a shade stronger than a 0.6 percent rise in June. Excluding automobiles, sales are seen up 0.1 percent compared with a 0.3 percent decline in the prior month. [USRSL=ECI]
Weekly U.S. jobless claims for the week ended Aug. 8 also due at 1230 GMT and are forecast to show 545,000 new filings for jobless benefits compared with 550,000 in the previous week. [USJOB=ECI] (Additional reporting by Anirban Nag in Sydney and Charlotte Cooper in Tokyo; Editing by Michael Watson)

LatitudeFX Limited and GAIN Capital Launch Award-Winning Forex Trading Platform

NEW YORK, AUCKLAND, New Zealand and SYDNEY PRNewswire via COMTEX/ ----Local foreign exchange (forex) trading services provider, LatitudeFX Limited, has partnered with global forex giant GAIN Capital to launch GAIN's award-winning forex trading platform in New Zealand and Australia.

In announcing the partnership and launch of LFX Trader, GAIN Capital CEO, Glenn Stevens, said he was pleased that LatitudeFX had chosen GAIN Capital as its forex provider and believed the arrangement would be a mutually beneficial one.

"The deal struck between the two firms will leverage LatitudeFX's strong presence in both New Zealand and Australia with GAIN Capital's proven forex trading technology, execution, clearing and custody services," said Mr. Stevens.

Locally grown

LatitudeFX is a provider of online trading services, support features and resources to retail traders on both sides of the Tasman.

LatitudeFX CEO, Mark Olley, said his customers are sophisticated retail traders who demand the best tools available.

"With the launch of LFX Trader, LatitudeFX customers have access to a highly customizable trading environment with a full suite of professional charting and order management tools, all supported by an experienced group of local forex professionals," said Mr. Olley.

Features of the LFX Trader platform include:

   --  Streaming executable quotes in 37 currency pairs, with real-time P&L
   and position tracking;
   --  Eight different order types, including advanced orders such as One
   Cancels Others (OCOs), If/Then OCOs, and Trailing Stops;
   --  The ability to set limits and stop loss levels by rate, pips or dollar
   P&L;
   --  A real-time charting package with over 60 technical studies and
   indicators;
   --  The ability to manage open orders and positions directly from the
   charts; and
   
   --  Embedded news and analysis, including intraday, daily and weekly
   research reports covering both fundamental and technical market trends.
   
   

In addition to LFX Trader, LatitudeFX also offers margin FX trading on its popular MetaTrader 4 platform.

Mr. Olley said the partnership with GAIN comes at a time when LatitudeFX is experiencing strong growth.

"Since we opened our first office in Auckland in 2007, the company has gone from strength-to-strength," said Mr. Olley.

Indirect shareholder Macquarie Bank Limited ("Macquarie Bank") provides operational and technical support to the LatitudeFX team as well as access to Macquarie Bank's global forex trading expertise and pricing.

"Our people are highly skilled and respected in their field and we feel that combining these attributes with the market-leading technology of a global player like GAIN Capital will bring a better FX trading experience to individuals in this highly competitive marketplace," said Mr. Olley.

About LatitudeFX

LatitudeFX is a New Zealand incorporated company, founded in 2007 by a number of experienced financial markets participants, who together bring over 60 years experience to the company.

LatitudeFX supply online trading services, support features and resources designed to provide interbank trading capabilities to retail traders. These services are provided directly by LatitudeFX with the support of our providers - all highly regarded organisations chosen for their specific expertise.

LatitudeFX is an "Authorised Futures Dealer" as notified by the New Zealand Securities Commission and is also regulated by the Australian Securities & Investment Commission and holds an Australian Financial Services Licence (AFSL) No.329813.

About GAIN Capital

GAIN Capital is a market leader in the rapidly growing online foreign exchange (forex or FX) industry. Founded in 1999 by Wall Street veterans, GAIN now services clients from more than 140 countries and supports average trade volume of nearly $200 billion per month with its customers and counterparties.

The company operates FOREX.com (www.forex.com) one of the largest, best-known brands in the retail forex industry. FOREX.com services individual investors of all experience levels with a full-service trading platform, advanced tools and research, and extensive education and training. In addition, GAIN Capital provides execution, clearing, custody, and technology products and services, supporting over 50 correspondent and white label arrangements with broker/dealers, Futures Commission Merchants (FCMs) and other financial services firms around the globe.

With offices in New York City, Bedminster, New Jersey, London and Tokyo, GAIN Capital Holdings and its affiliates are regulated by the Commodity Futures Trading Commission (CFTC) in the US, the Financial Services Authority (FSA) in the United Kingdom, and the Financial Services Authority (FSA) in Japan. For more company information, visit www.gaincapital.com or www.forex.com.

SOURCE GAIN Capital