Wed, Feb. 11, 5:36 PM
Thu, Feb. 5, 9:12 AM
Fri, Jan. 30, 9:12 AM| 4 Comments
Wed, Jan. 28, 9:16 AM
- FXCM will forgive about 90% of its clients who incurred negative balances in certain jurisdictions as a result of the violent move in the Swiss franc last week.
- Certain clients, however - such as institutional types, high net worth and experienced traders - will be notified that they're expected to pay up. This group represents about 10% of customers with negative balances, but more than 60% of the money owed.
- Source: Press Release
- Shares +7% premarket
- Previously: FXCM: January activity on pace for a record (Jan. 27)
Wed, Jan. 28, 9:14 AM
Tue, Jan. 27, 3:18 PM
- "FXCM (FXCM -2.5%) continues to operate in the normal course of business," says CEO Drew Niv, with volumes on pace to set a record this month. So far in January, customer trading volume is $406B, with average retail customer volume of $27B.
- Leucadia CEO Richard Handler and President Brian Freidman: "We view FXCM as our next opportunity to work with an investee company to create long-term value for all stakeholders."
- Source: Press release
Mon, Jan. 26, 9:14 AM
Fri, Jan. 23, 12:46 PM
Fri, Jan. 23, 9:11 AM
Thu, Jan. 22, 12:45 PM
Thu, Jan. 22, 9:15 AM
Wed, Jan. 21, 12:45 PM
Tue, Jan. 20, 8:37 AM
- The credit agreement with Leucadia (NYSE:LUK) is for a $300M two-year loan, with net proceeds to FXCM of $279M covering the negative client balances generated by the massive swings in the Swiss franc late last week.
- The loan carries an interest rate of 10%, increasing by 1.5% annually until it's paid off (with a 17% cap).
- The deal also essentially gives Leucadia much of the equity in the business, and it will get 50% of any dividend or sale proceeds up to $350M, then 90% for certain amounts above that, and 60% at another higher level of proceeds (all coming after the loan is paid off, of course).
- Source: Press Release
- FXCM is off 90% (from its Thursday close) premarket to $1.26.
- Previous coverage of the saga
Fri, Jan. 16, 4:46 PM
- Having finally come off its halt, FXCM is trading at $3.90. The forex broker was showing a ~90% drop in premarket trading this morning.
- The hard-luck forex broker is less than two hours removed from announcing a $300M financing deal with Jefferies parent Leucadia that will allow it to stay in business.
Fri, Jan. 16, 3:41 PM
- The $300M will allow FXCM to meet regulatory capital requirements and stay in business after clients blew a $225M hole in the company yesterday.
- In exchange for giving FXCM $300M, Leucadia (LUK +0.9%) gets a 2-year senior secured note for $250M and a claim to 75% of any proceeds should FXCM pay a dividend or be sold, reports CNBC.
- FXCM remains halted from trade after falling nearly 90% in the premarket.
- Dropping in sympathy in early action, GAIN Capital (GCAP +2.7%) is higher on the session, and Interactive Brokers (IBKR -0.5%) is down just modestly.
Fri, Jan. 16, 12:44 PM
FXCM vs. ETF Alternatives
FXCM Inc is an online provider of foreign exchange trading and related services to retail and institutional customers. It offers its customers the ability to trade contract for differences, spread betting, equities and equity options.
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