In its quarterly earnings report, Leucadia National Corporation (NYSE:LUK) announced that it has already started receiving loan repayments from FXCM Inc (NYSE:FXCM) after it provided a critical lifeline to the foreign exchange brokerage in the aftermath of the Swiss National Bank havoc.
The creditor company detailed in its earnings announcement that it expects FXCM Inc (NYSE:FXCM) to repay more than $75 million, or over a quarter of the loan within three months from the announcement made in January.
The details provided by Leucadia National shed light on the progress being made by FXCM on its loan repayment. According to the agreement between the companies, FXCM Inc (NYSE:FXCM) would incur a penalty of $30 million if it fails to reduce the principal of the loan to below $250 million before the 16th of April.
From the details provided by Leucadia, it looks like FXCM Inc (NYSE:FXCM) is on track with the effort and is striving to over-deliver on repayments in order to mitigate the impact of interest rate increases on the two-year loan it secured from Leucadia after announcing a $225 million loss from the Swiss National Bank turmoil.
The terms of the agreement between Leucadia National and the foreign Exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
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The repayment effort by FXCM looked increasingly challenging after December's CFTC data showed that retail forex funds held at the brokerage in December decreased by 12% , while according to initial data, the firm experienced an outflow of $332 million of client funds in the immediate aftermath of the Swiss franc debacle when compared to data from the firm's last quarterly report dating to September 3o.
In its quarterly earnings report, Leucadia National Corporation (NYSE:LUK) announced that it has already started receiving loan repayments from FXCM Inc (NYSE:FXCM) after it provided a critical lifeline to the foreign exchange brokerage in the aftermath of the Swiss National Bank havoc.
The creditor company detailed in its earnings announcement that it expects FXCM Inc (NYSE:FXCM) to repay more than $75 million, or over a quarter of the loan within three months from the announcement made in January.
The details provided by Leucadia National shed light on the progress being made by FXCM on its loan repayment. According to the agreement between the companies, FXCM Inc (NYSE:FXCM) would incur a penalty of $30 million if it fails to reduce the principal of the loan to below $250 million before the 16th of April.
From the details provided by Leucadia, it looks like FXCM Inc (NYSE:FXCM) is on track with the effort and is striving to over-deliver on repayments in order to mitigate the impact of interest rate increases on the two-year loan it secured from Leucadia after announcing a $225 million loss from the Swiss National Bank turmoil.
The terms of the agreement between Leucadia National and the foreign Exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
Read this Term
The repayment effort by FXCM looked increasingly challenging after December's CFTC data showed that retail forex funds held at the brokerage in December decreased by 12% , while according to initial data, the firm experienced an outflow of $332 million of client funds in the immediate aftermath of the Swiss franc debacle when compared to data from the firm's last quarterly report dating to September 3o.
