Ever since the historic Swiss franc event, FXCM had been at the brink of extinction, as the giant industry player incurred a total loss of $279 million. However through the saving hand of a $300 million loan injunction received from Leucadia National, FXCM barely managed to stay in business in the after-math of the SNB. The consequences of the ordeal has required FXCM to sell off its two arms in Japan and Hong Kong back in March this year, in order to come to terms of paying off their substantial Leucadia loan.
With the successful sale of the FXCM Japan, back on the 3rd of April 2015, to the Japanese giant Rakuten Securities at a vast sum of $62 million, FXCM gathered some funds for the repayment to Leucadia. Along with the indirect acquisition FXCM’s Faros Trading by Leucadia, rapid progress has been made by FXCM in its resurrection and repayment of debt.
Together, with today’s announcement of FXCM Hong Kong sold to Rakuten, it marks a furtherance of FXCM’s restoration to its earlier market status. Just now, it was confirmed by the FXCM Inc. signed a definitive contract with the reputable Rakuten Securities Inc. for the sale of FXCM’s operative arm in Hong Kong. Marking the second FXCM subsidiary acquisition of Rakuten Securtities after the earlier purchase of FXCM Japan. As reported, the sale of FXCM Hong Kong was settled at the considerate sum of $36 million.
In more detail, the expected date for the official transaction will take place in Q3 of this year. Due to the circumstances that the deal is subject to the administrative closing conditions and the required approval from the local authority Hong Kong Securities and Futures Commission. Furthermore, the examination and final recording of net assets will be postponed to the same date of transaction.
Having acquired another reputable arm of FXCM in Asia, the President of Rakuten Securities, Mr. Yuji Kusunoki stated the following excitement: "We are delighted to invite FXCM Hong Kong to Rakuten group, followed by FXCM Japan. This is a great opportunity for us to expand our FX business globally." Additionally, Rakuten Securities will keep the FXCM trading system intact for the current FXCM Hong Kong clients, which is executed through the white label agreement of FXCM.
In response to the remarkable deal, the CEO of FXCM expressed his contentment through the following statement: "We are pleased to extend our relationship and announce another transaction with Rakuten Sec through the sale of FXCM Hong Kong. This is another positive step towards FXCM completing its plan to sell non-core assets and repay the Leucadia loan."
Stay tuned with AtoZ Forex for the latest news upon the case and will be notifying you once the deal will be finalised.