FXCM parent Global Brokerage Inc receives Nasdaq delisting notice

Global Brokerage chapter 11 filing FXCM

Adding to its mounting problems, Global Brokerage Inc (NASDAQ:GLBR) has announced that it has received a delisting notice from stock exchange Nasdaq.

Global Brokerage, formerly FXCM Inc., is the publicly-traded holding company which now owns an effective 37% interest in operating company FXCM Group LLC. The remainder (or rather, majority) of FXCM Group is owned by Leucadia National Corp (NYSE:LUK), via a 49.9% direct holding plus future earn-out rights on eventual distributions.

On May 2, the Nasdaq Stock Market notified Global Brokerage that, for the prior 30 consecutive business days, the market value of the company’s publicly held shares was less than $15 million, which does not meet the requirement for continued listing under Nasdaq’s listing rules.

Although this notification has no immediate effect on the company’s listing on Nasdaq or on the trading of the company’s common stock, the market value of the company’s publicly held shares must exceed $15 million for ten consecutive business days between now and October 30, 2017, to avoid delisting.

If that market-value requirement is not satisfied, Nasdaq will provide written notice that the Company’s common stock is subject to delisting from The Nasdaq Global Select Market. In that event, the Company will either appeal such determination to a hearings panel or submit an application to transfer its securities to the Nasdaq Capital Market. The company stated that there can be no assurance that it will remain listed on The Nasdaq Global Select Market after October 31, 2017.

Global Brokerage (when it was still known as FXCM Inc.) moved it share listing from the NYSE to Nasdaq last year, as it was in a similar situation last September with the NYSE, with FXCM not meeting any more the NYSE’s listing criteria after a deterioration of its share price.

Global Brokerage is still also looking for a new CEO, with Drew Niv formally still holding the position of Interim CEO, until a replacement is found.

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