FXCM Inc Shares Trading down 85% in Pre-Market Trading
- Credit Suisse and Citi issued downgrades on the shares of FXCM Inc this morning as the company and its peers across the industry are losing substantial amounts of market value in pre-market trading on the NYSE.
The pre-market trading window has opened on the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term showing that FXCM Inc Shares are trading lower by about 85% from yesterday's closing price. Currently, shares are changing hands at $1.80 having traded as high as $17 on Monday.
The impact of the $225 million prospective loss of capital, which the company published late yesterday, has yet to be fully digested by the market. Credit Suisse has issued a two notch downgrade on the shares of the publicly listed brokerage, setting a $4 target.
As of September 30th, FXCM held cash on hand amounting to $326.7 million, with the debt of the company amounting to $188 million.
Credit Suisse analyst, A. Serreo, stated in the note detailing the downgrade, "We believe FXCM's Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider stopped making markets in the Swiss franc leaving the company unable to close losing client positions as the cushion provided by client collateral was absorbed."
Citi has also issued a downgrade on FXCM today, setting a $5 target.
Despite publicly announcing no material exposure to the events unfolding yesterday, GAIN Capital's share prices are down 23% before the market opens. Interactive Brokers is trading lower by 8.9%.
On the other side of the Atlantic, shares of publicly traded brokers, Plus500 and IG Group, are faring much better than their US peers. The UK's largest CFD brokerage is trading 1.6% lower, while Plus500 is trading flat.
The pre-market trading window has opened on the New York Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term showing that FXCM Inc Shares are trading lower by about 85% from yesterday's closing price. Currently, shares are changing hands at $1.80 having traded as high as $17 on Monday.
The impact of the $225 million prospective loss of capital, which the company published late yesterday, has yet to be fully digested by the market. Credit Suisse has issued a two notch downgrade on the shares of the publicly listed brokerage, setting a $4 target.
As of September 30th, FXCM held cash on hand amounting to $326.7 million, with the debt of the company amounting to $188 million.
Credit Suisse analyst, A. Serreo, stated in the note detailing the downgrade, "We believe FXCM's Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider stopped making markets in the Swiss franc leaving the company unable to close losing client positions as the cushion provided by client collateral was absorbed."
Citi has also issued a downgrade on FXCM today, setting a $5 target.
Despite publicly announcing no material exposure to the events unfolding yesterday, GAIN Capital's share prices are down 23% before the market opens. Interactive Brokers is trading lower by 8.9%.
On the other side of the Atlantic, shares of publicly traded brokers, Plus500 and IG Group, are faring much better than their US peers. The UK's largest CFD brokerage is trading 1.6% lower, while Plus500 is trading flat.