Both Drew Niv and William Ahdout resign from the FXCM Board of Directors as the Forex broker embarks on a major overhaul; FXCM changes name to Global Brokerage Inc. What are the other changes and will it be effective?
21 February, AtoZ Markets – The New York based Forex industry giant, Forex Capital Markets LLC, FXCM was forced to exit the US forex market by the US regulator CFTC earlier this month. Due to charges of being engaged in fraudulent and misleading solicitations. Moreover, the firm was imposed a civil monetary penalty of $7 million.
In addition to CFTC, the NFA also issued a ban on FXCM CEO Drew Niv to continue working on the US Forex market. In response these incidents, the FXCM group has now taken measures and embarked on a major overhaul. Not only are new shifts been announced in the board of directors, the brokerage has also confirmed that FXCM Inc. changes name to Global Brokerage Inc. To avoid confusion, FXCM Inc. is the publicly traded entity that, through a holding company, owns 50.1% of FXCM Group. Only FXCM Inc. will be changing its name to Global Brokerage, Inc.
Drew Niv and William Ahdout resign from the FXCM Board
In the company’s best interest, Mr. Niv and Mr. Ahdout have resigned from the FXCM Board of Directors. Accordingly, Drew Niv, after the US regulators' ban, resigns as a Director and Chairman of the Board. He also resigns as a Chief Executive Officer after the promotion of Brendan Callan as an Interim CEO. Bear in mind, that Brendan Callan is the newly named CEO of FXCM Group and not the CEO of Global Brokerage, Inc.
From here on, Mr. Niv will serve in the advisory role to the newly appointed successor. Mr. Callan has been the CEO and President of European Operations since 2010. Also, Mr. Callan developed Forex Capital Markets Limited (FXCM UK) into FXCM Group’s largest operating subsidiary.
Similarly, William Ahdout, who was also banned by the US regulators, resigns from his position of Director. Jimmy Hallac has been appointed as a Chairman of FXCM Group. Mr. Hallac serves as a Managing Director of Leucadia National Corporation. The Board members, Rich Handler and Brian Friedman commented on the new appointments as follow:
“We are very excited to have Brendan and Jimmy in their new roles. We believe that, under their leadership, FXCM Group will be able to continue to enhance and grow its global platform and customer offering.”
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Leucadia gains more control over FXCM
Leucadia came as a life saver for FXCM after the CHF unpegging by the Swiss National Bank in January 2015. FXCM ended up with over $225 million client losses. For this reason, the Leucadia-FXCM deal enabled Leucadia National Corporation to provide FXCM a lifeline of $300 million. Since then, FXCM has sold some of its Asian branched to pay off Leucadia. However, Leucadia still holds a significant interest in FXCM Group.
Especially, after the recent incidents which saw FXCM forced to leave the US Forex market. Together with the resignation of Drew Niv and William Adhout, it means for Leucadia National that it is gaining more control over the board. Now, that the Chairman position of the Board will be Jimmy Hallac. Moreover, the board seats also got reduced from eight to six. Where, previously Leucadia held over three seats of the firm.
FXCM changes name to Global Brokerage Inc.
FXCM Inc. has announced that it will be renamed to Global Brokerage Inc. According to the announcement of FXCM Inc. the name change will be effective from February 27, 2017. Alongside, the firm will be trading on the same date under its new ticker symbol "GLBR" on NASDAQ, through the new CUSIP 37891B109.
Traders should bear in mind that the change of name will only apply to the publicly traded company, FXCM Inc., which is the parent firm. Meanwhile, FXCM Group will not be changing its name and will continue to be known generally as FXCM, which through its operating companies (all of which will continue to operate with the FXCM name).
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