FXCM ramps up workforce reduction plans, updates on litigation

Maria Nikolova

The restructuring plan envisages 170 employees losing their jobs compared to initially reported 150 employees.

One of the gravest consequences of FXCM exiting the US retail Forex market is that many people lost their jobs. According to the initial reports issued by the company back in February, the planned restructuring of its operations involved 150 layoffs, or 18% of its global workforce. However, the 10-Q report just filed by Global Brokerage Inc (NASDAQ:GLBR) with the US Securities and Exchange Commission (SEC) has displayed somewhat different numbers, as it appears that FXCM is ramping up its workforce reductions plans.

The company said that in the first quarter of 2017, it implemented a restructuring plan as a result of its withdrawal from business in the US pursuant to the February regulatory settlements. The restructuring plan provides for a workforce reduction of approximately 170 employees, which represents 22% of FXCM’s global workforce. The revision is upwards.

The company explains that the majority of the affected employees completed service through the required notice period in April 2017.

In the first quarter of 2017, the company incurred total restructuring charges of $8.4 million, including severance costs for terminated employment contracts and continuing contract costs without economic benefit to the company.

Global Brokerage also reiterated its commitment to defend itself against lawsuits filed against it in response to the announcement on February 6, 2017.

As FinanceFeeds has reported, a number of putative securities class action lawsuits have been filed against Global Brokerage, Inc., Drew Niv, and Robert Lande in the U.S. District Court for the Southern District of New York. Four of these lawsuits have been combined.

In addition, Global Brokerage today provided some details about another case (# 1:17-cv-02729), filed by a customer of US  on April 14, 2017. This is a class action on behalf of customers who traded on the “No Dealing Desk” platform during the 2010-2016 period. The plaintiffs allege that these customers were harmed as a result of FXCM’s relationship and use of Effex Capital, LLC as a liquidity provider. The class action alleges (inter alia) breach of contract and breach of fiduciary duty by US and other related claims against Global Brokerage (FXCM), FXCM Holdings, Dror Niv, William Ahdout, and Effex and its principal.

FXCM insists it will defend itself against these accusations too.

Read this next

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

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.

<