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.

download

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.

 

Read this next

Digital Assets

Binance executives sue Nigerian authorities over rights violation

Two senior executives from Binance have filed a lawsuit against against Nigeria’s national security adviser’s office and its anti-corruption agency, alleging violations of their fundamental rights.

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

<