FXCM given ultimatum by New York Stock Exchange for share price collapse: Comply within 6 months or face delisting

It was only a matter of time before the officials at the New York Stock Exchange would begin to take action against FXCM Inc (NYSE:FXCM) over the prolonged period over which the company’s share prices languished at less than $1.00 per unit of common stock. The New York Stock Exchange has issued a notification to FXCM stating […]

It was only a matter of time before the officials at the New York Stock Exchange would begin to take action against FXCM Inc (NYSE:FXCM) over the prolonged period over which the company’s share prices languished at less than $1.00 per unit of common stock.

The New York Stock Exchange has issued a notification to FXCM stating that the company failed to comply with continued listing standards set out by the New York Stock Exchange, this particular infringement being that the closing price of FXCM common stock remained below $1.00 per share for longer than 30 consecutive trading days.

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The New York Stock Exchange stipulates that $1.00 is the minimum average price of common stock required for continued listing on the trading venue.

Currently, this is a notification to FXCM and there is no penalty, however the company has been given a period of 6 months to demonstrate that it can maintain its operations within the compliance guidelines, thus the New York Stock Exchange will monitor the closing price of FXCM stock, stating that

The Company can regain compliance at any time during the six-month cure period if the Company’s common stock has a closing share price of at least $1.00 on the last trading day of any calendar month during the period and also has an average closing share price of at least $1.00 over the 30-trading day period ending on the last trading day of that month or on the last day of the cure period.

FXCM has announced that it has begun to implement measures to cure this matter, having announced on July 21 this year that its board of directors approved a reverse stock split on a ration of one for ten. A vote by shareholders on this will take place on September 21 this year. This is intended to return the price to a compliant condition.

Since January 15 this year, FXCM’s share prices have plummeted from around the $9 per unit region, to less than $1. At close of business on September 9, the price of FXCM common stock had dipped another 5.24% and remains at $0.89 per unit, still below the minimum listing requirements set out by New York Stock Exchange, despite the company’s efforts to sell non-core assets during the course of this year to assist in settling its commitment to Leucadia following the Swiss National Bank’s removal of the peg on EURCHF pair in mid-January, causing FXCM to experience vast exposure to negative client balances.

 

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