This has little to do with 'regulatory efficiencies', and a lot more to do with personalities, cash - and China!
One thing that FXCM CEO Drew Niv is known for is being a shrewd acquirer. Other than FXCM's 2010 acquisition of ODL which didn't go quite as planned, FXCM has made some smart acquisitions at reasonable prices (Lucid Markets, Foreland Forex and CGI in Japan...), and has equally smartly avoided overbidding for other FX properties -- all the while growing FXCM into the world's leading retail FX brokerage firm (and a member of LeapRate's Approved List of global regulated FX brokers).
So why then is FXCM trying to buy Gain Capital, spending so much time and effort in trying to acquire its U.S.-based rival, which arguably has a lot more problems than FXCM -- a languishing share price, a tough time making money...??? Does FXCM need the hassle of dealing with Gain Capital's poison pill defense? If it is just a matter of growth and consolidation, why not just quietly buy a privately held FX broker?
For more details see LeapRate's Forex Industry News at http://leaprate.com/forex-industry-news/entry/why-is-fxcm-trying-to-buy-gain-capital.html.
And stay tuned to LeapRate for more as this unique story unfolds. With the Gain Capital poison pill Shareholder Rights Plan acquisition defense now in place, we expect several twists to unfold before all is said and done.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.