Following yesterday’s announcement that GAIN Capital (NYSE:GCAP) has entered into a definitive agreement to buy the US client book of FXCM (NASDAQ:FXCM), the CEO of the company Glenn Stevens is on the wires with his commentary.
Mr Stevens states: “We are pleased to continue our role as a leader in a consolidating industry. GAIN has a long history of successful transactions, having completed ten significant acquisitions over the last five years.”
“We will work very hard to ensure that there is a seamless transfer of clients to our award-winning FOREX.com service,” concluded Mr. Stevens.
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The commentary highlights clients’ worries following the latest developments in the US retail foreign exchange trading market. After the exit of FXCM only GAIN Capital and OANDA will be accepting US clients.
Retail FX has been consolidating for years in the United States. As a result retail clients are the ones that are on the hook, with very few options remaining to choose from.
The transition of the clients of FXCM to GAIN Capital will happen over the coming couple of weeks.
On Monday, the US Commodity Futures Trading Commission (CFTC) announced that FXCM has been suspended from offering its services to US clients. As a result the company has sought to dispose of its US client book. GAIN Capital jumped on the bandwagon by signing a letter of intent to purchase the asset from FXCM.