FXCM Inc Shares Spike Higher 15% After News of Board Member Buying

Ryan Silverman has spent less than $35,000 to buy additional 4200 shares of FXCM, but the market is taking this

Shares of FXCM Inc (NYSE:FXCM) are trending higher today after the only material news event around the company was the purchase of shares on the open market by board member Ryan Silverman.

The broker’s Board of Directors member and Chair of the Corporate Governance and Nominating Committee has filed with the SEC a form reporting that he acquired 4200 shares at an average price of $8.22.

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After the purchase, the total holdings of FXCM stock pertaining to Silverman has increased to 29,659 shares. Insider buying in the relatively small cap company which FXCM Inc (NYSE:FXCM) has become since the unfortunate events of January 2015 could be associated with big moves in share prices.

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The stock of FXCM Inc (NYSE:FXCM) has dropped about 95 per cent since January 2015 in the aftermath of the Swiss National Bank induced FX markets crisis. The unfortunate event of the Swiss franc instantly spiking against other major currencies by over 30 per cent left the straight through processing (STP) brokerage exposed to market risk through the credit of its clients.

As a result the firm had to negotiate a bailout with Leucadia National Corp. (NYSE:LUK) worth close to $300 million.

Last time the stock of FXCM Inc (NYSE:FXCM) moved dramatically higher was in December last year. A short squeeze and some speculation about a better shareholder deal with the firm’s creditors from Leucadia National has made the value of the shares of the company increase four times.

The stock of FXCM is currently trading almost 15 per cent higher at $9.21 after opening around $8 per share.

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