FXCM Group has taken additional steps to separate itself from Global Brokerage Holdings LLC, terminating an existing management agreement with the company. The mutually agreed step reflects a growing divide between the foreign exchange and CFD trading group and the holding company as both are going their separate ways.
The groups began separating over H2 2017. The group took steps to distance itself from Global Brokerage back in August, asserting that any developments in terms of GLBR’s stock price or delisting would have no impact on FXCM Group or its ability to serve its customers.
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To further reiterate this point, FXCM released a statement in August clarifying that the group bore no responsibility for GLBR’s obligations. Moreover, FXCM reiterated that its only debt was the loan to Leucadia, which it had moved one step closer to repaying via the sale of FastMatch.
Brendan Callan, CEO of FXCM, commented on the latest termination of the agreement: “We are extremely pleased to have taken this step. I believe that operating on a standalone basis is better for the firm, our stakeholders and most importantly our clients. FXCM continues to invest in our product offering and look forward to launching a new Web platform and MT5 in the coming months.”
Per the latest development, the management agreement was effectively terminated. “The termination of the Management Agreement represents the fact that FXCM and Leucadia continue to work closely to ensure that FXCM’s operating businesses are independent, strong, and built for future growth,” added Jimmy Hallac, Chairman of the Board of FXCM and Managing Director of Leucadia.