Gain Capital has received authorised status as a Futures Commission Merchant (FCM). It also announced the close of its Series B round and receipt of funding from US venture funds Edison Ventures, Cross Atlantic Capital Partners and Blue Rock Capital. As an FCM, Gain Capital becomes a member of the National Futures Association (NFA) and is regulated by the Commodity Futures Trading Commission (CTFC).
Gain proactively sought FCM status, as reported in the October 2001 issue of Profit & Loss. Mark Galant, CEO and founder of Gain, says, “Only a handful of competing firms have the infrastructure, background and financial strength necessary to receive regulatory status. Gain’s clients now enjoy the same level of confidence as investors in other US financial markets.”
As noted in the aforementioned Profit & Loss article in October, Gain’s participation in drafting a new regulatory framework for the FX market was welcomed by the NFA. Galant adds, “The NFA realises the FX market is significantly different than the exchange-based futures markets. As a result, they are seeking input from industry leaders and Gain is pleased to be part of the process.”
Edison Venture led Gain’s new Series B round of funding with Cross Atlantic and Blue Rock. Gain says it is fully capitalised, with the additional funds earmarked for software research and development, marketing initiatives and a wireless trading project. “The timing of this investment is particularly significant given the current market environment,” says 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.”