This ARTICLE in [I]Forex Magnates[/I] indicates that the massive loan from Leucadia to FXCM is not as large as originally reported, the interest rate on that loan is substantially worse than originally reported, and FXCM’s only recourse may be to put itself up for sale before April 2015. In the meantime, FXCM’s publicly trade stock continues to tank.
$1.60 a share??? Damn holmes…
Hi gents,
The $300M loan provided by Jefferies Group (a unit of Leucadia) allows FXCM to meet our regulatory capital requirements worldwide and continue normal operations. That means trading, deposits and withdrawals continue as before.
To reiterate, trading on FXCM’s systems continue in the normal course of business. It is important to stress that FXCM is not insolvent, has not filed for any form of bankruptcy, and is in compliance with all regulatory capital requirements in the jurisdictions in which it operates.
I kind of agree with that. I just have a question, if you didn’t receive that load you would still be able to operate? Was the loan specifically for the NFA license?
withdrawal continue as before?
but why my withdraw request has pending more than 5 days, and yet my money still on my trading account.
normally, it take about 1 day for them to deducted my money from my trading account after a withdraw request had been submited, and it take about 3 days for money to arrived on bank account. But now, it take more than 5 days…
i tried to contact FXCM representative by chat, but i end up waiting 30 minutes without getting any reply from them…
Sorry if you had any problems getting in contact with customer support via live chat. Withdrawals are indeed being processed as before. In regards to this specific withdrawal request, if you email <[email protected]> with your account details, our Operations department will be happy to update you on its status.
Hello Jason,
No doubt, this is a very busy time for you, and for everyone else at FXCM. So, I hope that my questions are not seen as a distraction from the serious matters you are dealing with. I want to ask about the accounts which produced the horrendous losses suffered by FXCM in the CHF crisis last week.
• What percentage of the $225M in customer losses were retail, as opposed to institutional?
• And, within those two categories, can you break it down further into number of retail accounts, and number of institutional accounts?
Interactive Brokers has recently revealed that 80% of the $120M in customer losses which they suffered occurred in just 5 accounts, and those 5 accounts were all offshore futures accounts, not retail spot forex accounts.
A similar summary from FXCM would be of interest to your clients.
Thanks.
Clint
Hello Everyone.
Before I head out for the day, here’s an FXCM business update we just released:
[B]Strong Operating Metrics[/B]
Through Thursday, January 22, FXCM’s month-to-date retail customer trading volume, which includes all retail FX and CFD volume, is $406 billion* with 30% coming from the last 5 days alone, which included a U.S. bank holiday. Average retail customer trading volume per day during this period is $27 billion.* As of January 22, tradable accounts were 224,547, and client equity was $1 billion.
“A week after the unprecedented movement of the Swiss Franc, and our financing agreement with Leucadia, FXCM continues to operate in the normal course of business. All of our entities have capital in excess of regulatory requirements. As our month-to-date metrics show, FXCM continues to be a global leader in retail FX with volumes on pace to set a record. We are especially thankful for our customers’ loyalty and support,” said Drew Niv CEO of FXCM.
Niv continued, “[U]The financing we received from Leucadia has strengthened our balance sheet and gives us the opportunity to grow our core business while reducing our debt through the sale of non-core assets.[/U] We anticipate that the proceeds from these sales and continued earnings, we can meet both near and long term obligations of our financing, while preserving the strength of our franchise.”
Richard B. Handler, Chief Executive Officer, and Brian P. Friedman, President of Leucadia, commented: “We view FXCM as our next opportunity to work with an investee company to create long-term value for all stakeholders, including FXCM’s dedicated employees and customers. We look forward to assisting Drew Niv and his team to develop the liquidity opportunities to repay last week’s emergency financing and then, as the long-term investors we are, to exercising the patience and diligence needed to maximize the value of FXCM over time as we strive to do for every investment in our portfolio, many of which we have held for the long term, and, in some cases, for over a decade.”
*Amount excludes volume generated by clients with negative balances following the Swiss National Bank’s decision to abandon the maximum exchange rate of 1.2 Swiss Francs per Euro.
Full statement: FXCM Provides Business Update (NYSE:FXCM)
As our CEO Drew mentioned, thank you to our traders for your continued support. I appreciate your patience while we work on answers to your most pressing questions, and I will continue to provide more information as I am able to.
Have a great weekend!
Jason
More news about the Leucadia bailout loan to FXCM —
FXCM Inc Unveils Revised Terms of Leucadia Agreement, Loses 3% of Clients
Hi Everyone,
Here is the press release we just issued:
[B]FXCM to Forgive Majority of Clients Who Incurred Negative Balances[/B]
NEW YORK, Jan. 28, 2015 (GLOBE NEWSWIRE) – FXCM Inc. (NYSE:FXCM), announced today its decision to forgive approximately 90% of its clients who incurred negative balances in certain jurisdictions, on January 15, 2014 as a result of the Swiss National Bank announcement on that date. FXCM will notify the applicable clients and adjust applicable client account statements in the next 24-48 hours. “FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this,” said Drew Niv, CEO of FXCM.
The SNB announcement, extreme price movements and the resulting lack of liquidity were exceptional and unprecedented events causing many market participants to incur trading losses. These events were unforeseen and beyond the control of FXCM.
FXCM will also notify certain clients (such as institutional, high net worth, and experienced traders who generally maintain higher account balances) requesting payment of negative balances, pursuant to the terms of the FXCM master trading agreements. This group represents approximately 10% of clients who incurred negative balances which comprises over 60% of the total debit balances owed.
Read the full press release: FXCM to Forgive Majority of Clients Who Incurred Negative Balances (NYSE:FXCM)
Jason