17 March, AtoZForex, Lagos – FXCM has undergone major restructuring recently, spanning from the aftermath effect of the historic January 15, 2015 Swiss franc event. After the sale of its Asian operations to Rakuten, the broker has released an update. Commencing from April 21, 2016, FXCM Asia Limited (FXCM Asia) will now be rebranded to Rakuten Securities Hong Kong Limited (Rakuten Securities HK.
A new cooperate image will also be launched on April 25, along with a new logo and website (www.sec.rakuten.com.hk). For those who are worried about potential changes to trade operations, FXCM clarified in its statement that:
“Please note that there will be NO change to your forex trades and trading account, and NO change to our office location in Central and phone number. You will continuously enjoy the benefits of trading forex with raw spread† and superior education resources.”
Rakuten securities is one of the foremost FX brokers in Japan and a subsidiary of Rakuten Inc., one of the world’s largest Internet services companies completed the purchase at approximately $38 million.
FXCM rebranding effort
As part of the recent rebranding that hit FXCM in the midst of the firm’s difficulty — being faced by very low share prices and plagued by debt – FXCM has reintroduced the B-book model, which it previously ditched to go full A-book. The dealing desk has been reintroduced to cater for clients who open accounts via the London based subsidiary, FXCM UK. Clients where officially notified of the new development via email. With large debts still looming from the aftermath effect of the SNB disaster of January 15, 2015, where it incurred about $265 million in losses. The company is forced to seek more streams of income. The loan from Leucadia National kept the company from going bankrupt, and ever since, the loan has paid up about $115 million of this debt, having failed to recover negative balances from clients.
In its latest annual report, FXCM clarified that expenses incurred for the investigation, costs of communications with customers, remediation activities associated with the recent cyberattack on the firm as well as other professional costs in relation to it totaled about $700 million.
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