FXCM is changing its name and its leadership following the recent scandal which saw the firm and its co-founders, William Ahdout and Drew Niv, fined $7 million and the firm banned from operating in the US.
In response to this, the company has changed its name to Global Brokerage, Inc. and the trading ticker symbol will change to “GLBR” expected to be effective at the opening of trading on February 27, 2017.
Niv has submitted his resignation to FXCM from his positions serving as a director and chairman of the board, effective immediately. He is also resigning as CEO, but will remain at the company in an advisory role “to assure an orderly transition”, says FXCM in a statement issued today.
Niv will be succeeded for now by Brendan Callan, who has been promoted to interim CEO of FXCM Group. Callan joined the firm in 2001, and has been the CEO and president of European operations since 2010, a period during which Callan developed FXCM UK into FXCM Group’s largest operating subsidiary.
Meanwhile, Ahdout has submitted his resignation to FXCM from his position serving as a director on the company’s board of directors, effective immediately.
“At this time all parties have decided that it is in the best interests of the company for Mr Niv and Mr Ahdout to resign from the board of directors,” says FXCM in a statement.
The firm also announced that Jimmy Hallac, a managing director of Leucadia National Corporation, has been appointed chairman of FXCM Group.
Leucadia holds a significant interest in FXCM Group, having provided the firm with a $300 million loan following losses suffered by the firm when the Swiss National Bank unexpectedly pulled its peg to the euro in January 2015.
The six-member board of directors of FXCM Group will now consist of Hallac; Rich Handler, CEO of Leucadia; Brian Friedman, president of Leucadia; David Sakhai, COO of Global Brokerage; Robert Lande, CFO of Global Brokerage; and Kenneth Grossman, managing director of Global Brokerage.
In addition to these changes, FXCM’s board, with the recommendation of the board’s nominating and corporate governance committee, appointed Bryan Reyhani to serve as chairman of the company’s board of directors.
Reyhani has been an independent director at FXCM since February 1, 2016.