14 December, AtoZForex.com, Lagos – FXCM Inc. has released a new update as regards its loan deal with Leucadia investment as well as news regarding its recently launched stock repurchase program. It is understood that both parties in the FXCM Leucadia deal remain geared towards maintaining a mutually beneficial relationship, hence, a proposal to restructure the existing Letter Agreement such that both companies enjoy the benefits of a sustainable long-term and value-enhancing strategy. However, all discussions are still ongoing and no decision has been reached at the moment.
Update on stock repurchase program
Also, as regards the stock repurchase program, FXCM’s Board of Directors previously authorized a stock buy back to the tune of $130 million, of which $65.8 million remains outstanding. FXCM staff have also been notified by senior management that they are free to purchase FXCM stock in the open market. This authority ensures that all such purchases will be subject to market and industry conditions, as well as share price and other factors, and will be in full compliance with applicable securities and other laws.
Sale of FXCM Securities
Besides the update on the FXCM Leucadia deal, another interesting recent development involves the sale of a non-core wing of FXCM’s business; FXCM securtities. FXCM Securities represents the arm of the firm primarily specialized in exchange traded equities, futures, and options, was acquired back in 2010 with FXCM’s acquisition of ODL Group Limited. FXCM Securities has now been sold to AS Expobank (“Expobank”). However, the firm described the transaction as “a non-material disposition of one of FXCM’s non-core assets. At this time the purchase price has not been disclosed.”
To the negative however, the French financial regulators have recently levied a fine upon the broker for violations of codes of conduct, after a hearing was held about a week back. It was discovered by the AMF that between 2009 and 2011, FXCM housed three money managers. Who were at the time unauthorised to carry out activities of managing funds. This has led to the potential chastisement of the broker, arguing that FXCM should have been aware upon the dealing of the trio.
Of the recent developments in the firm, it is also notable to mention the 1-10 reverse stock split supported by 93% of the company’sshareholders in a voting at the annual general meeting, the firm hit the headlines again over a hacking incident.
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