FXCM-Infinium $12M deal – not a direct investment

Clarification to yesterday’s story on FXCM’s investment in commodities market maker Infinium Capital.

Small clarification to yesterday’s announcement by FXCM that it had purchased a $12 million note issued by commodities market maker Infinium Capital. This might just be a small nuance, but LeapRate has learned that FXCM purchased the already-existing note from Infinium investors, not directly from Infinium itself — such that no new money was invested in Infinium.

The note has a maturity date of March 2015, about a year and a half from now.

FXCM did not provide any further details regarding the note — such as if it comes with any conversion-into-equity options attached, or any other rights beyond the right to get paid back $12 million in March 2015.

In the meantime, the investment by FXCM does not give it any ownership over Infinium. But it certainly does represent a theme we’ve seen lately from FXCM, of it actively growing the institutional side of its business, as it aims to have a 50-50 balance between its retail and institutional businesses. Just last month FXCM acquired Faros Trading, an institutional FX research shop.

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