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Screenshot of a breaking news alert e-mail from Q2 2017
According to a report by Bloomberg, quoting people with knowledge of the matter, Jefferies Group has entered discussions with FXCM Inc. (NYSE:FXCM) to provide the retail FX broker with $200 million in cash assistance.
As LeapRate reported earlier, the US retail FX giant has suffered a $225 million hit due to the adverse trading of its clients with the Swiss currency, which rose sharply against the EUR and the USD following the snap decision of the Swiss National Bank to scrap the minimum exchange rate for EUR/CHF.
The biggest concern of the broker is that the financial loss may lead to a regulatory capital requirement breach. The National Futures Association (NFA) has confirmed it was in talks with FXCM on the matter, while the company also stressed that it was cooperating with regulators and seeking ways to keep the capital in line with requirements.
There has been no confirmation on a possible deal between FXCM and Jefferies, an investment bank owned by Leucadia National Corp. (LUK). The Group has helped online trading companies in the past – in August 2012, Bloomberg reminds us, Jefferies was amid the firms that provided Knight Capital Group Inc with a lifeline of $400 million in cash.
Trading in FXCM shares remains on halt with important news on the way.