Global Brokerage Inc (NASDAQ:GLBR), the new name of the public company that accommodates FXCM’s assets outside of the US, received a potential blow to its long-term trading prospects in the form of a delisting notice from Nasdaq, amidst its share prices trading near 52-week lows and its market cap falling below a key minimum threshold.
Global Brokerage operates as a holding company with an indirect effective 37.3% ownership of FXCM Group LLC via its equity interest in Global Brokerage Holdings LLC – the announcement came with Global Brokerage’s share value hitting less than $15 million, failing to meet a mandated requirement for listing on Nasdaq’s Global Select Market listing rules.
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The announcement follows the company’s share prices falling to lows not seen since last year, bottoming out in March at $1.45 (a 52-week low). As of market close yesterday, GLBR shares retained a market cap of only $11.1 million.
However it is important to note that the announcement yields no immediate effect on Global Brokerage’s listing on the Nasdaq or the trading of its stock.
In order for GLBR to avoid delisting, the group must exceed a threshold of $15 million for ten consecutive trading days between now and October 30, 2017. Should this criterion not be satisfied, Nasdaq will officially take action to delist GLBR, though the group has the recourse of appealing the decision.