It will continue sliding until they announce how they are going to finance the 225Mn they need, 2 hours and 15 minutes left for them to let the market know.
At the current share price of a little over $6, they are only worth 200Mn, that is less than the money they need to recapitalise themselves, not looking good.
{quote} Check the link in my previous post, Oanda has an excess capital of 57 mil while a lower net capital requirement than FXCM while FXCM has only 14 mil excess capital. Point is Oanda has a much larger buffer than FXCM or Gain capital. Something to think about when choosing a dealer.
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Yea i know they come from the reserve.
Also is Oanda MM right, i saw some people has their SL near where it was placed, if real market, it probably gap so much.
Their emergency system didnt work as oanda or oanda isnt using market data.
Thanks for that. So to recap, FXCM in their wisdom last night decided to cut their ties to their customers here, then changed their mind about an hour ago thinking it may not look too good........
{quote} It will continue sliding until they announce how they are going to finance the 225Mn they need, 2 hours and 15 minutes left for them to let the market know. At the current share price of a little over $6, they are only worth 200Mn, that is less than the money they need to recapitalise themselves, not looking good.
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Shares trading at a little under $3.00 now, they are only worth 135MnUSD at current share price.
They have to find 225Mn in 2 hours, they are not going to get it with a share or rights issue at these prices. Will their banks extend them 225Mn based on a valuation of 135Mn, not likely.
There only seem to be 2 solutions left, find a buyer or chapter 11.
Don't want to cause panic here, but if their shareprice doesn't rebound soon, it doesn't bode well.
3 minutes after snb statement I request withdrawal of maximal available amount (due to margin requirements) from my account via myfxcm.com. Now My account is -100% and I still don´t know if they will send me my withdrawal or put that money back... I have 3 types of account statements, where I see withdrawal request from mt4, trade station and myfxcm.com. But would it help? FXCM is liquidity provider for some smaller brokers. For example I know, that 1 broker from UK, who is pairing trades via FXCM lost 400 milions € in 1 hour. They have to send...
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Guys FXCM send me money to my bank account few minutes ago.... From account that was freezed in chf stoplosses... thank god I saved 80%
{quote} Correct, however the negative equity of their customers reflect on their overall capital requirements and as they would struggle getting the money back from their clients, they will have to make up the shortfall themselves first thing when NY opens this morning. They can't tell the regulator to hang tight while they collect from their clients all over the world, plenty of whom will just ignore FXCM's requests for additional funds, it would be way too costly for FXCM to chase all their clients all over the world. So it is left to FXCM to...
{quote} Correct, they have to find 225 Million by 0900 NY time. They either issue share capital, find an investor, sell the business or close it down at 0901 EST.
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Goldfinch, could you please clarify why there is a 9am deadline? Obviously they need to raise capital, but why is 9am the deadline?
{quote} Shares trading at a little under $3.00 now, they are only worth 135MnUSD at current share price. They have to find 225Mn in 2 hours, they are not going to get it with a share or rights issue at these prices. Will their banks extend them 225Mn based on a valuation of 135Mn, not likely. There only seem to be 2 solutions left, find a buyer or chapter 11. Don't want to cause panic here, but if their shareprice doesn't rebound soon, it doesn't bode well.
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Literally, what are you talking about? You act as though you're in their boardroom meeting? Their share price might have dropped significantly but so have loads of companies....sometimes, this forum, honestly...not trying to cause offense, just it's best not to read too much into things you don't know, fxcm are the only ones to know....
{quote} Literally, what are you talking about? You act as though you're in their boardroom meeting? Their share price might have dropped significantly but so have loads of companies....sometimes, this forum, honestly...not trying to cause offense, just it's best not to read too much into things you don't know, fxcm are the only ones to know.... Regards,
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I don't need to be in their board room, they announced last night that they have a capital hole of 225 Million dollars that they need to find to continue operating, as of 5 minutes ago their company is worth 60 Million dollars.
{quote} I don't need to be in their board room, they announced last night that they have a capital hole of 225 Million dollars that they need to find to continue operating, as of 5 minutes ago their company is worth 60 Million dollars. I am just stating the facts as they are known.
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I agree that they're in a sticky situation (to put it lightly) but I don't believe there's this time bomb going off, this is a NYSE listed company. There must be more to it...
