BlackRock Cuts FXCM Inc Stake to Just Below 3 Percent

After the sale there are no institutional FXCM shareholders with a stake bigger than 5 percent with Vanguard maintaining 4.3

FXCM Inc (NYSE:FXCM) stock is trading close to its all-time lows at $1.22 after an announcement that one of the biggest institutional holders of the company’s equity has parted with a substantial portion of its stake.

The news comes after the company’s shares plummeted about 40 percent in the second quarter after detailed analyses by Jeffries has put a valuation on the firm at below its current market price. A follow up analysis published on Seeking Alpha that followed, prompted a huge selloff of FXCM Inc’s stock.

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The biggest institutional shareholder of FXCM, BlackRock filed a regulatory form with the U.S. Securities and Exchange Commission (SEC) revealing that the investment house has cut its holdings in FXCM Inc (NYSE:FXCM).

The BlackRock Institutional Trust Company sold 60 percent of its FXCM Inc (NYSE:FXCM) holdings to report a total of 1,467,341 shares of holdings. The number takes the stake of the world renowned investment management company to 2.9 percent of the brokerage.

Before this operation, BlackRock used to be the biggest institutional shareholder of FXCM Inc (NYSE:FXCM) with just above 7 percent of the company’s stock. The last time the investment management firm sold stock was in March, when it parted with 268,053 shares.

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After the announcement, the biggest institutional shareholder of FXCM is Vanguard with 2,171,361 shares or 4.28 percent of the company’s stock. With its current holding Blackrock remains in second, while Charlestone Venture Holdings LTD is the third biggest with 2.86 percent.

The current profile of top institutional investors also includes the Directors of Lucid markets Dierk Martin Reuter with 4 percent and Matthew Frederic Wilhelm with 5.3 percent. Both have acquired shares of FXCM in the aftermath of the acquisition of Lucid made by FXCM in 2012.

At the time FXCM Inc (NYSE: FXCM) acquired a 50% controlling stake in Lucid Markets paying a total of $176 million.

Shares of FXCM Inc are trading lower by 2 percent on the day at $1.30, hovering just above the all-time low set in the aftermath of the Swiss National Bank debacle which prompted FXCM Inc (NYSE:FXCM) to seek emergency liquidity assistance from Leucadia National. The bailout of FXCM totaled $300 million with a massive interest rate on the distressed loan.

In the aftermath of the announcement, FXCM has had to sell its Japanese and Hong Kong subsidiaries to raise money to service its loan from Leucadia National.

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