Articles tagged by FXCM
Thomson Reuters, FX Spotstream and FXCM
have all reported a month-on-month decline in FX average daily volume (ADV),
however the latter two are up on a year-on-year basis.
Thomson Reuters says spot volumes across
its platforms was $97 billion per day, 8.5% ...
Even as FXCM continues to extricate it from
a punitive loan that saved the firm, its travails are increasing with news the
US Commodity Futures Trading Commission (CFTC) has charged the firm over events
surrounding its near collapse in the ...
issued a statement expressing severe disappointment at the charges leveled against the firm by the Commodity Futures Trading
Commission (CFTC), stating that they are “unprecedented and unwarranted”.
claims relate to when the Swiss National Bank (SNB) ...
This should be the
time to tiptoe (very gently) back into the murky twilight that exists between
the legal/regulatory profession and markets, but as this column rarely believes
in doing anything gently, we’ll just pile right in. Are ...
A US court has granted a motion to
dismiss the legal complaints aimed at FXCM, and certain members of its senior
staff, in which the plaintiff alleged that they were mislead about the risks
associated with the firms’ agency business ...
FXCM has agreed to sell DailyFX, its news and research website to IG Group for $40 million.
Subject to IG final approval and customary closing conditions, the transaction is expected to close by the end of October.
Upon completion, IG will receive the entire DailyFX business including all international and domestic web domains, source code and content.
The 34 employees currently working on DailyFX domains will also transfer to IG in the transaction. FXCM will continue to be an advertiser to US and Canadian residents on the DailyFX English version of the website.
Brandon Mulvihill, managing director, head of FXCM Pro, explains that there is still not enough clarity about the different prime-of-prime services being offered in the FX market, and warns that it is a mistake to believe that these firms are currently ready to fill the gap left by the tier one prime brokers.
Profit & Loss: Since “SNB Day” there have been a lot of firms touting prime-of-prime (PoP) services to the FX market. Many of them actually provide very different services. Two years on from SNB, do you feel like these differences are better understood by market participants?
The US Commodity Futures Trading Commission (CFTC) has fined FXCM and its founding partners $7 million and ordered the firm to withdraw from doing business in the US for defrauding retail FX customers.
In an order issued today the Commission settled charges against FXCM, its parent company, FXCM Holdings, and two founding partners, Dror (“Drew”) Niv, and William Ahdout, who are the CEO and managing director of FXCM, respectively.
“The Order requires Respondents jointly and severally to pay a $7 million civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act and CFTC Regulations, as charged.
FastMatch, has announced today that Brian Friedman, president, and Jimmy Hallac, managing director, of Leucadia National Corporation, have joined its board of directors.
They have replaced former directors Drew Niv and William Ahdout, who were fined $7 million alongside FXCM, as it was ordered to withdraw from doing business in the US for defrauding retail FX customers yesterday.
FXCM is a passive minority owner of FastMatch. FastMatch operates as a completely independent entity of FXCM with no operational dependencies between two firms.
FXCM has been fined and banned from trading in the US retail FX market, but there are so many other questions to be asked regarding this whole mess - not least what should we do about the market maker named in the complaint? This case highlights the problems with the blurred line between retail and institutional because here we have a scandal that spans both segments and while at the retail end we can do something about it apparently, there are questions as to what, if anything, can be done about the institutional abuse.
FXCM has agreed a settlement for $650,000 with the US Commodity Futures Trading Commission (CFTC), relating to allegations that the firm was under-capitalised following the volatility caused by the Swiss National Bank’s (SNB) decision to abandon its peg to the euro.
The CFTC originally filed the civil action against FXCM’s US subsidiary in the Southern District Court of New York on August 18, 2016.
The action alleges that FXCM US was briefly under-capitalised as a result of the SNB’s unexpected announcement on January 15, 2015, that it was abandoning its historical policy of pegging the Swiss franc to a fixed exchange rate of 1.2000 Swiss francs per euro.
Last week’s diatribe following the FXCM fine and banning in the US triggered a fair amount of feedback – thankfully all of it supportive – and I think it is fair to say that the consensus is that if people continue to deal with the firm then they should be warned now they will have no recompense if things go wrong. This week I would like to look deeper into a worrying aspect of this episode - the broader FX industry's failure to heed the warning given three years prior.
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.
The FX industry has, by and large, been swift and united in its condemnation of the actions of FXCM, for which the firm was banned from the US and fined $7 million for defrauding FX customers.
But, as they say, there are always two sides to every story and so Profit & Loss has been talking to various market sources that provide different perspectives on this case. This is challenging because as part of the legal agreements between FXCM and the Commodity Futures Trading Commission (CFTC), the firm neither denied nor admitted the allegations against it, and therefore cannot speak to the press about the issue.
FXCM’s forced exit from the US leaves only two major retail OTC FX-focused brokerages in the market. Galen Stops talks to the CEOs of these firms about what this means for the industry.
“The retail foreign exchange market has suffered a less than exemplary reputation for some time now,” concedes Vatsa Narasimha, CEO of Oanda.
The latest blow to the industry’s reputation comes as the US Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) concluded that FXCM had defrauded its US customers, ordering it to withdraw from doing business in the country and fining the firm and its founding partners a total of $7 million.
FXCM has known its share of controversy in recent years and now the firm has been barred from operating in the US. Profit and Loss staff report on an issue that has triggered another round of introspection in the FX industry.
Just over two years after staving off bankruptcy due to losses resulting from the Swiss National Bank’s decision to unpeg the Swiss franc, FXCM has been forced to withdraw from operating in the US, changed its name and seen its two principals step down from the business.
The unravelling of FXCM has impacted across the FX industry with questions being asked around the effectiveness of self-regulation, how the Global Code of Conduct could deal with a repeat offence, and how the industry moves forward in an atmosphere of mistrust?
Euronext has completed the acquisition of 90% of FastMatch, after having received regulatory and anti-trust approvals.
This follows the announcement of 23 May 2017 on the signing of the agreement with the existing shareholders of FastMatch.
In a release issued today, Euronext says that the acquisition is part of its “Agility for Growth” strategy, and that it will diversify Euronext’s top line, accelerate its growth profile and allow the group to extend its “best execution” value proposition to an additional asset class.
"Prime-of-Prime" has become something of an umbrella term these days, used by many firms operating very different business models. So Profit & Loss asked a number of firms that place themselves in this category exactly what constitutes a "true" prime-of-prime service provider.
The management agreement between FXCM and Global Brokerage – the firm that rose from the ashes of FXCM’s US operation when it was banned earlier this year, has been formally ended.
In an announcement, the firms say the termination was mutually agreed by the two parties and “reflects the continuing separation of FXCM from Global Brokerage”.
Following the banning for concealing its relationship with its number one liquidity provider, FXCM sold most of its customer accounts in the US to Gain Capital and re-branded.
Market sources tell Profit & Loss that Lucid Markets has sent out a communication to all clients stating it is closing its business effective immediately.
The firm, which is majority owned by FXCM, which holds a 50.1% stake through its UK arm, is a electronic market maker in FX.
Although there is surprise at the suddenness of the announcement and the immediate closure, Lucid has been, according to its latest filing in mid-2017, “actively marketed for sale” by FXCM as the latter continues to divest itself of assets following its rescue by Leucadia in early 2015.
Capitolis has gone live with a foreign exchange credit switching service, Capitolis Switch.
In a release issued today, Capitolis says that its mission is to address capital markets constraints in the financial system and claims that, with the launch of Capitolis Switch, a key credit issue is addressed. The firm says that this service will enable the unbundling of execution, processing, capital and risk in FX prime broking (FXPB).
Capitolis says it is working with Citi, Jefferies and FXCM in launching this new service.