Retail forex broker FXCM Group and Leucadia National Corporation (NYSE:LUK) today responded to questions from FXCM’s customers regarding FXCM’s relationship to Global Brokerage, Inc. (NASDAQ:GLBR).
Leucadia, a diversified holding company with a $8.5 billion market value, holds a 49.9% equity interest and up to a 65% economic interest in FXCM and is firmly committed to the success of FXCM’s success.
GLBR is a shareholder of FXCM with 50.1% equity ownership and a minority economic interest. More importantly, FXCM has no responsibility or obligation for GLBR’s debt or other obligations. Accordingly, the recent news and any adverse developments at GLBR have no impact on FXCM or its ability to service its customers.
Leucadia continues to work hand in hand with FXCM management,” said Jimmy Hallac, Managing Director of Leucadia and Chairman of FXCM Group. “We are optimistic about what we can achieve together and reaffirm our long-term commitment. FXCM has had solid operating performance in a challenging market environment and has come a long way in reducing its debt and strengthening its balance sheet. Customers should feel confident trading with FXCM as their FX and CFD provider.
FXCM’s only debt is its loan to Leucadia. Currently, $66.7 million remains outstanding on the Leucadia loan while FXCM has approximately $130 million in capital following the sale of FastMatch with $123.9 million in cash as of June 30, 2017. As recently announced, FXCM used $46.7 million of proceeds from the sale of its stake in FastMatch to pay down the Leucadia loan and expects additional paydowns in the coming months.
FXCM is grateful for its partnership with Leucadia,” said Brendan Callan, Chief Executive Officer of FXCM Group. “Our customers, employees and stakeholders benefit greatly from the Leucadia affiliation, in particular our growing collaborative relationship with Jefferies.