FXCM Continues Normal Operations, Raises $300M in Capital | Forex Factory

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Attachments: FXCM Continues Normal Operations, Raises $300M in Capital
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FXCM Continues Normal Operations, Raises $300M in Capital

  • #1
  • First Post: Jan 16, 2015 4:13pm Jan 16, 2015 4:13pm
January 16, 2015

Leucadia National Corporation and FXCM Announce $300 Million Financing to Permit FXCM to Continue Normal Operations

NEW YORK--(BUSINESS WIRE)-- Leucadia National Corporation (NYSE: LUK) and FXCM (NYSE: FXCM) today announced that Leucadia would be providing $300 million in cash to FXCM and its subsidiaries (collectively "FXCM") that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after yesterday's loss of $225 million due to the unprecedented actions of the Swiss National Bank. Under the terms of the agreements, Leucadia is investing $300 million in cash into FXCM in the form of a $300 million senior secured term loan with a two-year maturity and an initial coupon of 10%. The term loan obligations are guaranteed, on a secured basis, by certain of FXCM's domestic subsidiaries. In addition, Leucadia will receive, in the event of a sale of FXCM or its subsidiaries, a certain percentage of the sale proceeds and, in the event FXCM makes other distributions on account of its equity, a corresponding payment for its own account. This transaction is expected to close this afternoon. Drew Niv, Chief Executive Officer of FXCM, stated: "We could not be more grateful to Leucadia and its team for their rapid and effective response and to our regulators, who have been willing to work with us through this challenging process. Leucadia's support and this financing are by far the best alternative for FXCM, our customers, our shareholders, and all other relevant constituencies. We are pleased to continue to act as the leading online provider of foreign exchange trading and related services to retail and institutional customers worldwide."

Click to see full press release: http://bit.ly/1ua85Ve
  • #2
  • Jan 16, 2015 4:16pm Jan 16, 2015 4:16pm
Shareholders wont be happy. I suppose its better than outright insolvency tho.
  • #3
  • Jan 16, 2015 4:16pm Jan 16, 2015 4:16pm
Good to see you back, I was worried you'd forgotten your login details?
  • #4
  • Jan 16, 2015 4:27pm Jan 16, 2015 4:27pm
Quoting shrike
Shareholders wont be happy. I suppose its better than outright insolvency tho.
Anyone purchasing stock takes on company risk. Clients DO NOT sign up for company risk when they open an account with a broker. A trader that had no swissy positions shouldn't get their account wiped out for no reason other than the company's lack of risk controls.
  • #5
  • Jan 16, 2015 4:28pm Jan 16, 2015 4:28pm
Quoting hg2014
Good to see you back, I was worried you'd forgotten your login details?
Thank you, it's good to be back! I wanted to post sooner but the nature of such announcements required me to wait until the official press release.
  • #6
  • Jan 16, 2015 4:31pm Jan 16, 2015 4:31pm
How can I help you? Send me a Private Message!
  • #7
  • Jan 16, 2015 4:36pm Jan 16, 2015 4:36pm
Quoting shrike
Shareholders wont be happy. I suppose its better than outright insolvency tho.
lol what i heard .. ist allready up 350% afterhours ...**




***.... from the lows thou lucky daytraders might have a nice weekend ahead..

Attached Image
  • #8
  • Jan 16, 2015 4:46pm Jan 16, 2015 4:46pm
Quoting Twee
//-----


i second that emotion...... ...... and raise ya 1 ........h
to trade and code, keep both simple... no call to impress....h
  • #9
  • Jan 16, 2015 4:57pm Jan 16, 2015 4:57pm
Well I'm glad it worked out and I still have a broker, nice to see you back Jason Rogers though you had me worried for a little while there...
  • #10
  • Jan 16, 2015 4:58pm Jan 16, 2015 4:58pm
Quoting srt
{quote} Anyone purchasing stock takes on company risk. Clients DO NOT sign up for company risk when they open an account with a broker. A trader that had no swissy positions shouldn't get their account wiped out for no reason other than the company's lack of risk controls.
Shareholders will still not be happy. Wondering if Drew will survive this mess.
  • #11
  • Jan 16, 2015 5:06pm Jan 16, 2015 5:06pm
How in the Hell could FXCM let this happen, the biggest retail Fx-Broker in the US. The Irony the smaller brokers Gain, Oanda had no problem, WTF. I was on the right side of trade but may have lost acct due to incompetence, HOLY SH--. I think they are going to lose a lot of accounts, UNBELIEVABLE!!!!!!!!!
  • #12
  • Jan 16, 2015 5:11pm Jan 16, 2015 5:11pm
Quoting Fx-Baron
How in the Hell could FXCM let this happen, the biggest retail Fx-Broker in the US. The Irony the smaller brokers Gain, Oanda had no problem, WTF. I was on the right side of trade but may have lost acct due to incompetence, HOLY SH--. I think they are going to lose a lot of accounts, UNBELIEVABLE!!!!!!!!!
I;m pulling all my capital, trading is hard enough without having to worry about if your acct is safe with a broker. I am thankful they got bailed out so I can at least get my money, imagine if that deal fell through, Yes I am partly to blame for not diversifying but I trade multiple lot postions so I need alot of capital in an acct to cover my margins.
  • #13
  • Jan 16, 2015 6:45pm Jan 16, 2015 6:45pm
It is very promising to see that FXCM strongly deal with such a big problem. Occasionally, we see such huge movements in forex markets, but the latter one was really huge.
  • #14
  • Jan 16, 2015 7:09pm Jan 16, 2015 7:09pm
Quoting Jason Rogers
January 16, 2015 Leucadia National Corporation and FXCM Announce $300 Million Financing to Permit FXCM to Continue Normal Operations NEW YORK--(BUSINESS WIRE)-- Leucadia National Corporation (NYSE: LUK) and FXCM (NYSE: FXCM) today announced that Leucadia would be providing $300 million in cash to FXCM and its subsidiaries (collectively "FXCM") that will permit FXCM to meet its regulatory-capital requirements and continue normal operations after yesterday's loss of $225 million due to the unprecedented actions of the Swiss National Bank. Under the...
My A/c was lost by $904! Will I get refund from FXCM please?
  • #15
  • Jan 16, 2015 7:24pm Jan 16, 2015 7:24pm
It is glad to hear gd news from fxcm. i am still fxcm big fan.

but i hope fxcm can be responsible for clients loss because of stop order not been excuted in SWISS MIXED DAY
  • #16
  • Jan 16, 2015 7:54pm Jan 16, 2015 7:54pm
Good news that FXCM will live to see another day. But Jason can you comment on what exactly is FXCM's gameplay in the Doomsday scenario where it goes bankrupt? Which is still very much a possibility now that its up to its eyeballs in debt. Do American laws offer any protection such as in my Etrade account where non-invested money is federally insured up to over $1 million I believe?

I understand if you are not in a position to tell us. But I am not afraid to find this info out myself, in fact I will. and when I do I will tell everyone I can.
  • #17
  • Jan 16, 2015 9:22pm Jan 16, 2015 9:22pm
Quoting Fx-Baron
How in the Hell could FXCM let this happen, the biggest retail Fx-Broker in the US. The Irony the smaller brokers Gain, Oanda had no problem, WTF. I was on the right side of trade but may have lost acct due to incompetence, HOLY SH--. I think they are going to lose a lot of accounts, UNBELIEVABLE!!!!!!!!!
fxcm is a public company, it is obligated to disclose such information but not saying others are lying/hiding something but I think, having an in house MM help them avoid or come out without a significant loss.
  • #18
  • Jan 16, 2015 9:22pm Jan 16, 2015 9:22pm
That's a really great news, but I need a break after this "avalanche", SNB action and chain effect is crazy, too crazy
  • #19
  • Jan 16, 2015 9:42pm Jan 16, 2015 9:42pm
I posted this over a month ago

Quoting Profit Daily
The regulations in the US do not protect us. Our funds are not separate from company funds. If broker goes bust, you lose your money. There are many unregulated brokers offshore who will accept US citizens. The way I look at it, if my money is not protected in the US, there is no more risk trading offshore. Actually, the way I view it, it's less risky. To trade a standard (100K) lot in the US, requires 2,000 in margin, the same trade with my unregulated offshore broker requires $200. The other $1800 remains in MY FDIC INSURED PERSONAL BANK ACCOUNT....
I have 3 unregulated off shore brokers. Had a great trading week and other than not being able to trade CHF pairs for maybe 5 hours, neither I nor my brokers were impacted at all. To anyone still believing you should be with a US based regulated broker......get your head out of the sand.
  • #20
  • Jan 17, 2015 12:18am Jan 17, 2015 12:18am
Quoting Jason Rogers
{quote} Thank you, it's good to be back! I wanted to post sooner but the nature of such announcements required me to wait until the official press release.
Good to see you back. We feel bad about FXCM's losses just like how we felt bad for our fellow traders who lost their hard-earned profits in light of non-existent liquidity and market. And we are glad to see that FXCM has received assistance that it needed to continue its endeavours in foreign exchange brokerage services.

We wish FXCM all the continued success and we are looking forward to being part of the forex industry where FXCM will continue to play an integral part.

Alll the very best!
Make your losses in demo. Earn your profits live.
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