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Screenshot of a breaking news alert e-mail from Q2 2017
FXCM Inc (NYSE:FXCM), the US retail Forex giant that has been severely battered by the Swiss franc spike on January 15, 2015, has made another important step in raising funds to repay its loan to Leucadia National Corp. (NYSE:LUK).
It has just been announced that Jefferies Group LLC – wholly owned by Leucadia – is purchasing Faros Trading, LLC, the institutional foreign exchange brokerage subsidiary of FXCM Inc. FXCM is selling the business for an undisclosed sum less than two years after its purchase.
Leucadia, of course, is the company which bailed out FXCM with a $300 million lifeline in mid-January.
Fred Orlan, Global Head of Fixed Income at Jefferies, stated: “We are very pleased to expand our capabilities in foreign exchange. With major changes in these markets, we believe that there is a significant opportunity to provide clients with transparent advice, best-execution and market-expertise. Our foreign exchange effort will be closely coordinated with our global rates capabilities, in order to provide clients with a full-service macro offering.”
The news of the sale of Faros Trading comes just a week after FXCM completed the transaction that saw FXCM Japan become a fully-owned subsidiary of Rakuten Securities.
Investors would be curious to see details of the latest deal, as this is set to have a direct impact on the repayment of the loan FXCM Inc has taken from Leucadia. LeapRate reminds its readers that selling non-core assets is a part of FXCM’s efforts to raise funds and pay off the loan that allowed the FX broker to stay afloat after “Black Thursday” events.
To view the original announcement on the deal, click here.