FXCM Global Brokerage Management Agreement termination mirrors an escalating division between the holding company and the Forex and CFD trading firm. What do we know so far?
FXCM Global Brokerage Management Agreement Terminated
The official press release of the FXCM states:
“FXCM Group, LLC ("FXCM Group" or “FXCM”), a leading international provider of online foreign exchange trading, CFD trading, spread betting and related services, today announced that the Management Agreement between FXCM and Global Brokerage Holdings, LLC (“Holdings”) had been terminated.”
The organizations have decided to separate ways over H2 2017. The FXCM has taken steps to distance itself from Global Brokerage in August 2017. Back in May 2017, Global Brokerage Inc received FXCM Nasdaq delisting Notice. Thus, the group has decided to make sure that any developments in regards to the GLBR’s stock price or delisting would not impact the FXCM.
Brendan Callan, CEO of FXCM, has commented on the latest development within FXCM:
“We are extremely pleased to have taken this step. I believe that operating on a standalone basis is better for the firm, our stakeholders and most importantly our clients.
FXCM continues to invest in our product offering. It looks forward to launching a new Web platform and MT5 in the coming months.”
FXCM and Leucadia will continue close collaboration
Moreover, the Chairman of the Board of FXCM and Managing Director of Leucadia, Jimmy Hallac, stated:
“The termination of the Management Agreement represents the fact that FXCM and Leucadia continue to work closely to ensure that FXCM’s operating businesses are independent, strong, and built for future growth.”
Furthermore, FXCM has released a statement in August that clarified that the group does not bear any responsibility for the GLBR’s obligations. The group also highlighted the fact that its only debt was the loan to Leucadia. The FXCM planned to pay off the debt via the help of sale of FastMatch.
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