FXCM Inc shares rise more than 10% for second straight day. But why?


Shares of retail forex broker FXCM Inc (NYSE:FXCM) rose 15% on Wednesday – combined with Tuesday’s move, that makes for a 27% jump in FXCM stock so far this week.

Helping the move up in FXCM stock was in part the new risk-on atmosphere in the equity markets. The DJIA enjoyed its second straight day seeing a 200+ point move up. However the Dow’s 3% rise doesn’t tell the whole story for FXCM.

So what’s up with FXCM shares? Or, more precisely, why the move up?

FXCM isn’t likely to report Q4 results for a few more weeks. (Last year they reported Q4 / Full Year financials on March 12). So it doesn’t appear as if this is any kind of speculation around how Q4 went financially at FXCM.

And in any event, as we’ve reported before, it wouldn’t really matter how FXCM does, since most of the upside in FXCM now belongs to Leucadia, thanks to the $300 million rescue loan Leucadia provided FXCM last January.

Most of the scuttlebutt in financial chat rooms seems to be around renewed speculation on negotiations between FXCM and Leucadia, to restructure the ‘Leucadia loan’. However neither party has made any formal indications since FXCM’s mid December surprise press release that it and Leucadia ‘remain committed to restructuring their existing Letter Agreement’.

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FXCM Inc shares rise more than 10% for second straight day. But why?

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