The major US-founded broker Gain Capital Holdings Inc (NYSE:GCAP), which operates the popular FOREX.com brand has reported some new revenue figures in its latest SEC filing, while also informing its FOREX.com Japanese customers of a possible data breach that occurred earlier this year.
Since the broker has signed a merger agreement with INTL FCStone earlier this year, GAIN Capital has been reporting on its performance in a “post-signing” period related to the stock buyout agreement. Further to previous encouraging metrics, GAIN CApital has reported that its net revenues amounted to $41 million and net income rose to $11.9 million between April 1st and 30th – the so-called “Q2 post-signing period”.
This is a good sign for GAIN Capital shareholders and investors, but it may prove to create some doubts among the key stakeholders, as the merger agreement stock buyout price is lower than the fair market value of the brokerage today, as one may argue. As such, it will be important to gauge the sentiment of GAIN Capital’s Board of Directors, which has indicated it will continue to review all positive and negative factors of the deal before an anticipated meeting to vote on the merger.
Meanwhile, the retail Japanese business of GAIN Capital, under the FOREX.com brand has sent a notice to customers indicating a possible data breach may have occurred on April 14th, 2020. The broker explains that “it was discovered that Forex.com Japan’s network may have been accessed by an unauthorized third party and clients’ personal data viewed. In order to protect clients’ personal data and to resolve any issues, the broker immediately blocked access to the systems involved, initiated an in-depth investigation, and notified relevant parties, including the authorities.” The broker is currently recommending that customer change their passwords as a precaution and has not provided any further details on how the possible breach may affect customer accounts.