Late last week, foreign exchange trading brokerage Gallant Capital Markets also known as GCMFX announced that the company is filing for bankruptcy protection. Apparently the name of the company has confused some industry participants. The FX market’s rumor mill associated UK FCA regulated GCM Prime with the New York bankruptcy court case.
The CEO of UK FCA regulated firm, GCM Prime, Adam Toro has just sent an email to clients, to dispel those rumors.
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The letter to the clients of GCM Prime outlines that “certain misinformation and conjecture about our firm has emerged”. Customers of the FCA regulated firm that last year acquired the institutional clients book of CapMarFX, or Capital Market Services, have been reassured.
“GCM Prime is an independent FCA regulated company. Gallant Capital Markets, an FSC registered company, voluntarily filed for Chapter 11 reorganization and has no effect on GCM Prime. GCM Prime was not acquired by Gallant nor does it share a similar management structure.
The company’s statement proceeds with a declaration that client funds are segregated. Last year GCM Prime solidified its balance sheet via shareholder capital injections. The brokerage is outlining that the firm has shown improved financial performance in 2016 and will be releasing its financial results in the coming weeks.