The company’s CEO Drew Niv highlighted in the conference call after the FXCM Inc earnings report yesterday that the firm intended to repay its loan to Leucadia National by the end of 2015 primary through assets sales.
After FXCM Inc (NYSE:FXCM) reported its earnings and trading volumes figures yesterday, the company’s CEO Drew Niv and CFO Robert Lande have taken to the earnings call. FXCM’s senior management revealed crucial details about the company's future plans after the dramatic events of the 15th of January.
The main takeaway from the earnings call is that as expected, there will be a major restructuring of FXCM Inc's (NYSE:FXCM) business in the coming months. The company’s CEO Drew Niv outlined that aside from selling its institutional businesses, which was already clearly communicated by the firm, it intends to part with its FXCM Japan and FXCM Hong Kong subsidiaries.
In the aftermath of the Swiss National Bank’s decision to scrap the floor under the EUR/CHF, FXCM Inc (NYSE:FXCM) was forced to shore up its balance sheet. The company was forced to recapitalize, signing a $300 million loan agreement with Leucadia National with a starting interest rate of 10%, growing by 1.5% each quarter.
Revision of Losses from January 15th and Sale of FXCM Japan and Hong Kong
Estimated losses from the Swiss National Bank's induced Volatility on the currency markets have increased to $276 million from the initially reported $225 million. This figure matches the net proceeds which FXCM Inc (NYSE:FXCM) got from the Leucadia National loan agreement.
The company’s CEO, Drew Niv, highlighted during the earnings call that the firm intends to make significant reductions in its obligations to Leucadia National through the sale of non-core assets. The main surprise from this statement is in the details, as the CEO of FXCM Inc (NYSE:FXCM) stated that the firm decided to exit its business in Japan and Hong Kong.
Speaking during the earnings call, Mr. Niv said, “We have decided to exit the Japanese and Hong Kong retail markets selling our locally regulated subsidiary in each country. The sales will not only generate meaningful proceeds, but will also liberate over $50 million of cash which currently resides in these two entities.”
“We have multiple bids for each subsidiary and are seeing significant competition for these properties. We are in active discussions to select the best bid and move towards closing in the near future,” he explained.
From the $50 million which Mr. Niv mentioned, $22 million in cash lie on the balance sheet of FXCM Japan, while the remaining $28 million are in the Hong Kong subsidiary of FXCM Inc.
The company's CEO Drew Niv stated, “We believe that the sale proceeds plus cash freed from the balance sheet of these entities could exceed $250 million, which would go a long way towards repaying if not fully repaying the Leucadia loan.”
Considering the lucrative Japanese market and the expansion appetite of many companies to acquire businesses in the region, the sale of this unit could net FXCM somewhere between $40 and $50 million.
The Hong Kong unit of the firm generated about $2.5 million in non-GAAP adjusted EBITDA in 2014. The jurisdiction and the lack of wide media coverage of the Swiss National Bank conundrum which FXCM faced, likely saved the value of the brand and clients continued to hold their accounts with the brokerage.
The main proceeds from potential sales will come from the non-core business of FXCM Inc (NYSE:FXCM). Back in 2012, FXCM acquired Lucid Markets for $176 million, with the estimated total costs of the investment totaling $192 million.
Considering the pressure under which FXCM is to sell its institutional business, and the outflow of institutional clients from FXCM, the company is not likely to recover its investment in this business.
The other big institutional business of FXCM, FastMatch, has experienced dwindling volumes in the aftermath of the Swiss National Bank debacle leading to decreased volumes.
FXCM owns 35% of FastMatch and the stake is on the sale list of the company alongside its high-frequency trading investment in V3. The company paid around $16 million for a 50.1 percent stake in V3, with the rest of the unit owned by Lucid Markets.
Retail Revenue per Million Drops to $69, Clients to Choose Dealing Desk or Not
The retail revenues per million (RPM) which FXCM reported for the fourth quarter of 2014 totaled $69. This is $1 below the estimate which the company made in its previous earnings report.
In order to optimize its RPM, FXCM Inc (NYSE:FXCM) has announced that it will be returning the dealing desk model for clients with equity below $20,000.
The company’s CEO Drew Niv said during the earnings call, “To accelerate growth in our core business we will launch a hybrid desk model for small retail FX accounts. These are accounts with less than $20,000 of deposits. While these accounts maybe large in number, they still represent much less than half of our trading volume.”
FXCM Inc aims to balance between dealing desk and agency model execution in order to maximize its RPM. The brokerage will present a choice for clients between higher Leverage options with dealing desk execution and agency execution with lower leverage.
Following the announcement, shares of FXCM Inc (NYSE:FXCM) traded up 15% in pre-market trading on the New York Stock Exchange at $2.48.
After FXCM Inc (NYSE:FXCM) reported its earnings and trading volumes figures yesterday, the company’s CEO Drew Niv and CFO Robert Lande have taken to the earnings call. FXCM’s senior management revealed crucial details about the company's future plans after the dramatic events of the 15th of January.
The main takeaway from the earnings call is that as expected, there will be a major restructuring of FXCM Inc's (NYSE:FXCM) business in the coming months. The company’s CEO Drew Niv outlined that aside from selling its institutional businesses, which was already clearly communicated by the firm, it intends to part with its FXCM Japan and FXCM Hong Kong subsidiaries.
In the aftermath of the Swiss National Bank’s decision to scrap the floor under the EUR/CHF, FXCM Inc (NYSE:FXCM) was forced to shore up its balance sheet. The company was forced to recapitalize, signing a $300 million loan agreement with Leucadia National with a starting interest rate of 10%, growing by 1.5% each quarter.
Revision of Losses from January 15th and Sale of FXCM Japan and Hong Kong
Estimated losses from the Swiss National Bank's induced Volatility on the currency markets have increased to $276 million from the initially reported $225 million. This figure matches the net proceeds which FXCM Inc (NYSE:FXCM) got from the Leucadia National loan agreement.
The company’s CEO, Drew Niv, highlighted during the earnings call that the firm intends to make significant reductions in its obligations to Leucadia National through the sale of non-core assets. The main surprise from this statement is in the details, as the CEO of FXCM Inc (NYSE:FXCM) stated that the firm decided to exit its business in Japan and Hong Kong.
Speaking during the earnings call, Mr. Niv said, “We have decided to exit the Japanese and Hong Kong retail markets selling our locally regulated subsidiary in each country. The sales will not only generate meaningful proceeds, but will also liberate over $50 million of cash which currently resides in these two entities.”
“We have multiple bids for each subsidiary and are seeing significant competition for these properties. We are in active discussions to select the best bid and move towards closing in the near future,” he explained.
From the $50 million which Mr. Niv mentioned, $22 million in cash lie on the balance sheet of FXCM Japan, while the remaining $28 million are in the Hong Kong subsidiary of FXCM Inc.
The company's CEO Drew Niv stated, “We believe that the sale proceeds plus cash freed from the balance sheet of these entities could exceed $250 million, which would go a long way towards repaying if not fully repaying the Leucadia loan.”
Considering the lucrative Japanese market and the expansion appetite of many companies to acquire businesses in the region, the sale of this unit could net FXCM somewhere between $40 and $50 million.
The Hong Kong unit of the firm generated about $2.5 million in non-GAAP adjusted EBITDA in 2014. The jurisdiction and the lack of wide media coverage of the Swiss National Bank conundrum which FXCM faced, likely saved the value of the brand and clients continued to hold their accounts with the brokerage.
The main proceeds from potential sales will come from the non-core business of FXCM Inc (NYSE:FXCM). Back in 2012, FXCM acquired Lucid Markets for $176 million, with the estimated total costs of the investment totaling $192 million.
Considering the pressure under which FXCM is to sell its institutional business, and the outflow of institutional clients from FXCM, the company is not likely to recover its investment in this business.
The other big institutional business of FXCM, FastMatch, has experienced dwindling volumes in the aftermath of the Swiss National Bank debacle leading to decreased volumes.
FXCM owns 35% of FastMatch and the stake is on the sale list of the company alongside its high-frequency trading investment in V3. The company paid around $16 million for a 50.1 percent stake in V3, with the rest of the unit owned by Lucid Markets.
Retail Revenue per Million Drops to $69, Clients to Choose Dealing Desk or Not
The retail revenues per million (RPM) which FXCM reported for the fourth quarter of 2014 totaled $69. This is $1 below the estimate which the company made in its previous earnings report.
In order to optimize its RPM, FXCM Inc (NYSE:FXCM) has announced that it will be returning the dealing desk model for clients with equity below $20,000.
The company’s CEO Drew Niv said during the earnings call, “To accelerate growth in our core business we will launch a hybrid desk model for small retail FX accounts. These are accounts with less than $20,000 of deposits. While these accounts maybe large in number, they still represent much less than half of our trading volume.”
FXCM Inc aims to balance between dealing desk and agency model execution in order to maximize its RPM. The brokerage will present a choice for clients between higher Leverage options with dealing desk execution and agency execution with lower leverage.
Following the announcement, shares of FXCM Inc (NYSE:FXCM) traded up 15% in pre-market trading on the New York Stock Exchange at $2.48.
Cheetah Fund Investors Lose $9 Million in Alleged Fraudulent Scheme
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔