GAIN Capital has signed a definitive agreement with FXCM to buy the foreign exchange broker’s US client base. The news comes after Monday’s news that the US Commodity Futures Trading Commission (CFTC) filed and settled charges with FXCM, forcing the brokerage out of the US market.
The acquisition of the US client portfolio of FXCM will make GAIN Capital the biggest brokerage in the US. The announcement confirms the preliminary deal which the brokerages publicized on Monday.
Market Cap of Meme Cryptocurrency Dogecoin Spikes to Unprecedented LevelGo to article >>
Throughout the third quarter, the average daily volume (ADV) generated by US clients of FXCM totalled about $2.4 billion. The financial terms of the transaction have not been disclosed.
Clients of FXCM will be transferred to GAIN Capital’s Forex.com brand. The deal is subject to final regulatory approval and is expected to close before the end of February.
Commenting on the deal, the CEO of GAIN Capital, Glenn Stevens, said: “We are excited to welcome customers of FXCM’s U.S. operations to our award-winning FOREX.com service.”
Shares of GAIN Capital traded 5.3 percent higher during the New York trading session, reflecting optimism about the acquisition.