FXCM (Global Brokerage) runs into trouble with NASDAQ listing

Global Brokerage Inc (NASDAQ:GLBR) is having trouble with remaining listed on NASDAQ, according to an official filing with the US Securities and Exchange Commission (SEC) today.

On May 2, 2017, Nasdaq informed Global Brokerage Inc that during the prior 30 consecutive business days the market value of the company’s publicly held shares was less than $15 million. This value fails to satisfy the requirement for continued listing under The Nasdaq Global Select Market listing rules.

This notification has no immediate effect on the company’s listing on the Nasdaq Stock Market or on the trading of the company’s common stock, according to Global Brokerage.

However, the market value of the company’s publicly held shares has to surpass $15 million for ten consecutive business days between now and October 30, 2017, in order for Global Brokerage to avoid delisting.

If that market-value requirement is not met, Nasdaq will issue a written notice that the Company’s common stock is subject to delisting from The Nasdaq Global Select Market. In that event, Global Brokerage will either appeal such determination to a hearings panel or submit an application to transfer its securities to the Nasdaq Capital Market.

Global Brokerage says there can be no assurance that it will remain listed on The Nasdaq Global Select Market after October 31, 2017.

FXCM Inc changed its publicly traded name and ticker to Global Brokerage Inc shortly after the February 2017 regulatory revelations about the broker using misleading practices with regards to its dealing desk and regulatory reporting. Investors lawsuits against the broker are piling up in the US courts, with NY Judge ruling last week to combine four of the securities class actions against the broker into one action, to be led by The Rosen Law Firm. The lead plaintiffs include hedge fund 683 Capital LP, which is considered to have the biggest financial stake in the case.