FXCM due to answer to complaints in Murrah case by June 9, 2017

Maria Nikolova

The complaints were served to FXCM Holdings and Forex Capital Markets LLC on May 19, 2017.

The legal proceedings against FXCM in the New York Southern District Court gather pace, with the latest developments concerning the case captioned Murrah v. Forex Capital Markets LLC et al (1:17-cv-03700). As FinanceFeeds reported earlier this week, the case could not join the “mega lawsuit” against FXCM, which already combines four cases and is spearheaded by The Rosen Law Firm as a lead counsel.

Doris Murrah, the plaintiff, has filed a complaint against Global Brokerage Inc (NASDAQ:GLBR), FXCM Holdings, Forex Capital Markets LLC, William Ahdout and Dror Niv. According to the latest court updates, the affidavits of service of complaints were submitted on May 23, 2017, with the court. The affidavits concern FXCM Holdings, LLC, and Forex Capital Markets, LLC. Both companies have until June 9, 2017, to file their answers.

FXCM Holdings LLC has no current status, according to the United States National Futures Association. Forex Capital Markets LLC has an NFA permanent bar imposed on it as of March 10, 2017. This followed a settlement with US regulators announced on February 6, 2017.

The legal burden on FXCM continues to grow. In the coming months, the company and several of its principals will have to answer in another lawsuit too – the one combining the following four cases:

  • 1:17-cv-01028 (Blinn v. FXCM Inc. et al);
  • 1:17-cv-00955 (Zhao v. FXCM Inc. et al);
  • 1:17-cv-00916 (Khoury et al v. FXCM Inc. et al);
  • 1:17-cv-02506 (683 Capital Partners, LP et al v. Global Brokerage, Inc. f/k/a FXCM Inc. et al.)

Although Global Brokerage Inc, known in the past as FXCM Inc, has stated several times that it will defend itself in all these cases, it is obvious that the fight will be long and costly. Whereas Global Brokerage faces the threat of default in case it gets delisted from NASDAQ, FXCM Group, in which Global Brokerage has an indirect effective interest of 37.3%, is under pressure to repay the loan to Leucadia and is seeking to sell its non-core assets, including Lucid Markets and V3 Markets. As FinanceFeeds reported on May 23, 2017, FXCM Group has agreed to sell its stake in FastMatch for $55.6 million to Euronext.

Meanwhile, it became clear that a number of top executives of Global Brokerage, including Drew Niv, who has resigned as Global Brokerage’s interim CEO earlier this month, are foregoing a part of their annual bonuses considering the financial condition of the company.

Read this next

Retail FX

Scope Markets doubles down on Middle East: AED accounts ahead of GCC Equity CFDs

“To bolster our footprint in this thriving ecosystem, it was a strategic imperative to integrate AED accounts and introduce a slew of CFD equities reflecting the GCC landscape. This not only appeases the domestic audience but also beckons international investors aspiring to delve into these dynamic markets.”

Market News

Navigating the Complex World of Central Banks: Inflation, Rates, and Economic Growth

Inflation continues to loom large over both European households and businesses, leaving central banks in the region grappling with a prolonged battle to reach their target levels.

Institutional FX

QUODD partners with Blue Ocean for real-time after-hours market data

“Investors are increasingly global, and market data providers like QUODD are facilitating access to data that enables global traders to invest in US markets. Partnering with top-tier fintech providers like QUODD allows Blue Ocean to extend its reach to a new demographic of investors.”

Retail FX

Moomoo Canada launches pro-level tools, free Level 2 data, and affordable US stock trading

“Being a real social trading platform in Canada, we cultivate a unique ecosystem helping our users grow… The world is eager to hear the voice of Canadian individual investors, and we look forward to more contributions from Canadian investors in our moo community.”

Industry News

CFTC sues Patrick Wonsey for $3.4 million FX and binary options scam

Wonsey allegedly diverted these monies for personal use and orchestrated payouts to other pool participants, mirroring a classic Ponzi scheme.

Digital Assets

MoneyGram to launch non-custodial digital wallet

“In collaboration with SDF, MoneyGram has been working towards creating equitable access to the global financial system. With the introduction of this non-custodial digital wallet, we are further emphasizing our commitment to providing consumers with a bridge to the digital economy while upholding our brand’s integrity for speed, efficiency, and trust.”

Digital Assets

Binance exits Russia as part of crypto exchange’s compliance strategy

“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the web3 industry around the world and will focus our energy on the 100+ other countries in which we operate.”


ECNG Digital taps iDenfy for AI-driven ID verification for user onboarding

“In the realm of virtual currency exchange and payment services, the real challenge lies in balancing fraud prevention with swift identity verification. Our mission is to guide ECNG Digital on this path, ensuring precision while accelerating understanding.”

Retail FX

Verification On eToro Explained: Step By Step Guide

Traders Union emphasizes the importance of eToro’s verification process as a pivotal step in ensuring a safe and compliant online trading experience.