FXCM Receives NYSE Notification as Share Price Continues to Underperform
- As the company's share price struggles to stay above $1.00 per share, it risks being delisted from the NYSE.
Leading online Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFD broker, FXCM Inc (NYSE:FXCM), announced that it was notified on September 3, 2015, by 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 (NYSE) that it was not in compliance with the continued listing standards.
Under section 802.01C of the Listed Company Manual of the NYSE, listed companies are required to maintain an average closing price of the company’s common stock above $1.00 per share.
However, FXCM’s shares have been on a downward trend since the company took a heavy hit on Black Thursday back in January, when the Swiss National Bank decided to unpeg the franc, sending the currency soaring.
Since then, its share price has continued to fall. The notification letter cited that FXCM’s share price had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.
To remedy the predicament, the company’s Board of Directors approved a 1-10 reverse stock split back in July to stave off being delisted from the NYSE, which would essentially boost the trading value of each share and bring it back in line with NYSE standards. However, the move still needs to gain shareholder approval, who will vote on whether to proceed with the reverse stock split on September 21, 2015.
Without a major reversal of the company’s fortunes, the reverse stock split appears to be the only avenue to cure the price condition. Under NYSE rules, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement.
The Board ... encourages all shareholders to vote in favor for the reverse stock split as this could ensure the avoidance of a delisting.
FXCM has urged shareholders to approve the split, saying: “The Company and Board of Directors believe that effecting the reverse stock split is in the Company’s and shareholders’ best interests and encourage all shareholders of record to vote in favor for the reverse stock split as this could ensure the avoidance of a delisting.”
In a statement, FXCM was keen to point out that “the notice has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the NYSE under the symbol “FXCM”. At this time, the Company believes that neither the notice nor a possible future delisting will have an impact on FXCM’s business operation or its activities as an online FX trading broker.”
Leading online Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFD broker, FXCM Inc (NYSE:FXCM), announced that it was notified on September 3, 2015, by 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 (NYSE) that it was not in compliance with the continued listing standards.
Under section 802.01C of the Listed Company Manual of the NYSE, listed companies are required to maintain an average closing price of the company’s common stock above $1.00 per share.
However, FXCM’s shares have been on a downward trend since the company took a heavy hit on Black Thursday back in January, when the Swiss National Bank decided to unpeg the franc, sending the currency soaring.
Since then, its share price has continued to fall. The notification letter cited that FXCM’s share price had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.
To remedy the predicament, the company’s Board of Directors approved a 1-10 reverse stock split back in July to stave off being delisted from the NYSE, which would essentially boost the trading value of each share and bring it back in line with NYSE standards. However, the move still needs to gain shareholder approval, who will vote on whether to proceed with the reverse stock split on September 21, 2015.
Without a major reversal of the company’s fortunes, the reverse stock split appears to be the only avenue to cure the price condition. Under NYSE rules, the Company has six months following receipt of the notification to regain compliance with the minimum share price requirement.
The Board ... encourages all shareholders to vote in favor for the reverse stock split as this could ensure the avoidance of a delisting.
FXCM has urged shareholders to approve the split, saying: “The Company and Board of Directors believe that effecting the reverse stock split is in the Company’s and shareholders’ best interests and encourage all shareholders of record to vote in favor for the reverse stock split as this could ensure the avoidance of a delisting.”
In a statement, FXCM was keen to point out that “the notice has no immediate impact on the listing of the Company’s common stock, which will continue to trade on the NYSE under the symbol “FXCM”. At this time, the Company believes that neither the notice nor a possible future delisting will have an impact on FXCM’s business operation or its activities as an online FX trading broker.”