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

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

<