FXCM Announces Issuance Of $12M Note To Infinium - Is Takeover On The Cards?

FXCM has today confirmed industry speculation that it was interested in Infinium Capital Holdings by purchasing a $12 million note issued by the Chicago-based asset management and high frequency trading firm.

A significant acceleration of acquisitions and mergers has been noticeable over the last few weeks, with North American companies seeking to diversify their offerings, an example being FXCM’s recent acquisition of a controlling stake in Faros Trading LLC.

Acquisition or Capitalization?

Last month, 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 Magnates detailed the potential interest demonstrated by FXCM in purchasing Infinium Capital Holdings, insofar as the method expected to take place being similar to that conducted upon FXCM’s acquisition of its controlling 50.1% stake in institutional FX market maker Lucid Markets.

Infinium Capital Holdings executives have in the past been reported to have been seeking additional 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 due to regulatory changes taking place in high-frequency trading, and under this circumstance, FXCM has executed the deal in the form of the extension of a note to Infinium Capital Holdings of $12 million. The note matures in August 2015.

Payment and yield information of the note was undisclosed by the parties at this point. Forex Magnates speculates, that an equity ownership conversion rate may also be included in the agreement.