25 April, AtoZForex, Lagos – The FXCM Asia rebranding to Rakuten Securities Hong Kong Limited (Rakuten Securities HK) has been finalized. After the finalization of the deal, which saw Rakuten securities HK acquire the Asian business of the American giant FX company, FXCM Asia will now be known as Rakuten securities HK. The firm has now launched a new cooperate image, 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.”
Leucadia settlement
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. Rakuten’s acquisition of FXCM cost an estimated $38 million. The funds were used to settle part of its outstanding loan under its credit agreement with Leucadia and will have repaid $115 million to date, with $195 million in outstanding debt to Leucadia.
FXCM Asia rebranding to Rakuten Securities chain of events
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 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.
At the time of completion of the Rakuten deal, the CEO of FXCM, Drew Niv 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.”
Think we missed something? Let us know down in the comments section.