Leucadia acquires Faros Trading of FXCM


9 April, AtoZForex.com, Amsterdam — In pursuance of repaying its loan to its post SNB Black Swan savior Leucadia National Corp, FXCM has amended its available resources, in order to pay off its debt. Just a while ago, the US Forex giant has successfully sold its subsidiary in Japan to the respective Rakuten Securities for a deal of $62 million. The official confirmation of this particular sale took place on the 1st of April, enabling FXCM to pay Leucadia an additional sum of $54 million, right after the deal.

Currently the US giant still has its subsidiary in Hong Kong for sale, however in today’s announcement of an additional sale, will bring FXCM the necessary funds. Reportedly, the whole owned Jefferies Group LLC by Leucadia, has commenced its acquisition of FXCM’s subsidiary Faros Trading LLC. A remarkable case since the lending firm, who bailed the US giant broker for a staggering $300 million post the SNB, now acquires Faros Trading indirectly of FXCM. Notably, the amount for the settlement is unknown and has not been disclosed by either party.

Having a closer look at the case, it is evident that FXCM only possessed Faros Trading LLC for a brief period. Back in September 2013, the forex broker acquired the global player on the institutional foreign exchange market, for the purpose of strengthening its offering on the institutional market. At the time the financial side of the deal was also undisclosed.

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Accordingly, Jefferies Group has released an official press release upon the acquisition of Faros Trading LLC. From this release it is evident that the Global Head of Fixed Income, Mr. Fred Orlan is highly satisfied with the deal: “We are very pleased to expand our capabilities in foreign exchange. With major changes in these markets, we believe that there is a significant opportunity to provide clients with transparent advice, best-execution and market-expertise. Our foreign exchange effort will be closely coordinated with our global rates capabilities, in order to provide clients with a full-service macro offering.”

How will the deal impact the repayment of FXCM?    

As Leucadia acquires Faros Trading, the public is highly curious about the financial details of the deal. Will it directly resolve the indebted loan of FXCM to its lender Leucadia? As speculations arise within the market, the only thing that can be derived from this case is that FXCM is doing everything it possible can to pay off its loan. Together with the recent sale of FXCM Japan, the broker is making great progress on the repayment process.

All that the involved firms have disclosed about this deal, is the inessential news upon an internal management shift. Namely, the CEO of Faros Trading LLC, Mr. Ray Kamrath will take the position of Global Head of Foreign Exchange at Jefferies Group. All being part of the integration of both companies for a firm stance in the market.

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