FXCM Group Clarifies its Relationship to Global Brokerage, Inc.

FXCM Group, LLC ("FXCM Group" or “FXCM”), a leading international provider of online foreign exchange trading, CFD trading, spread betting and related services, and Leucadia National Corporation (NYSE:LUK) (“Leucadia”) today responded to questions from FXCM’s customers regarding FXCM’s relationship to Global Brokerage, Inc. (NASDAQ:GLBR) (“GLBR”). 

Leucadia, a diversified holding company with a $8.5 billion market value, holds a 49.9% equity interest and up to a 65% economic interest in FXCM and is firmly committed to the success of FXCM’s success. 

GLBR is a shareholder of FXCM with 50.1% equity ownership and a minority economic interest.  More importantly, FXCM has no responsibility or obligation for GLBR’s debt or other obligations. Accordingly, the recent news and any adverse developments at GLBR have no impact on FXCM or its ability to service its customers.

“Leucadia continues to work hand in hand with FXCM management,” said Jimmy Hallac, Managing Director of Leucadia and Chairman of FXCM Group. “We are optimistic about what we can achieve together and re-affirm our long-term commitment.  FXCM has had solid operating performance in a challenging market environment and has come a long way in reducing its debt and strengthening its balance sheet.  Customers should feel confident trading with FXCM as their FX and CFD provider.”

FXCM’s only debt is its loan to Leucadia.  Currently, $66.7 million remains outstanding on the Leucadia loan while FXCM has approximately $130 million in capital following the sale of FastMatch with $123.9 million in cash as of June 30, 2017.  As recently announced, FXCM used $46.7 million of proceeds from the sale of its stake in FastMatch to pay down the Leucadia loan and expects additional paydowns in the coming months. 

“FXCM is grateful for its partnership with Leucadia,” said Brendan Callan, Chief Executive Officer of FXCM Group.  “Our customers, employees and stakeholders benefit greatly from the Leucadia affiliation, in particular our growing collaborative relationship with Jefferies.”

About Leucadia National Corporation

Leucadia National Corporation is a diversified holding company that invests in a broad array of businesses. The Company’s financial services businesses and investments include investment banking and capital markets (Jefferies Group), asset management (Leucadia Asset Management), real estate (HomeFed), online provider of foreign exchange trading services (FXCM), commercial mortgage banking, investment sales and servicing (Berkadia), and vehicle finance (Foursight Capital). The Company’s merchant banking businesses and investments include an insurance and consumer products company (HRG Group), beef processing (National Beef), oil and gas exploration and development (Vitesse Energy and JETX Energy), automobile dealerships (Garcadia), fixed wireless broadband services in Italy (Linkem), manufacturing (Idaho Timber) and a gold and silver mine (Golden Queen).

About FXCM Group, LLCFXCM Group is a holding company of Forex Capital Markets Limited, inclusive of all EU branches (FXCM UK), FXCM Australia Pty. Limited (FXCM AU), and all affiliates of aforementioned firms, or other firms under the FXCM group of companies [collectively "FXCM"].

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, spread betting and related services. The company's mission is to provide global traders with access to the world's largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime.

Trading foreign exchange and CFDs on margin carries a high level of risk, which may result in losses that could exceed your deposits, therefore may not be suitable for all investors. Read full disclaimer.

Jaclyn Sales, 646-432-2463
Vice-President, Corporate Communications
[e-mail]