FXCM UK announces change of name of person with significant control to Global Brokerage
The announcement, made in a Confirmation Statement dated June 23, 2017, confirms that Global Brokerage is a person with significant control in FXCM UK.
Forex Capital Markets Limited (FXCM UK) has unveiled some changes concerning its person with significant control (PSC).
In a Confirmation Statement with Updates filed on June 23, 2017, with the UK Companies House, FXCM UK says the name of its PSC has been changed from FXCM Inc to Global Brokerage Inc.
The announcement may seem a bit trivial as FXCM Inc became Global Brokerage Inc (NASDAQ:GLBR) about four months ago. And yet, such announcements are important, as they provide us with information about the ownership structure of a company and shed light on the consequences of the US market exit on FXCM’s overseas business.
FXCM has reiterated numerous times that what happened to its business in the United States will not have marked consequences for its overseas business. In fact, in May this year, when FXCM UK posted its financial report for 2016, the company said it does not expect any regulatory action from the UK Financial Conduct Authority (FCA) over the business practices uncovered by US regulators and made public in February.
The company said back then: “We are therefore comfortable that the Company will not be put into enforcement with the FCA and will not face any fines or public sanctions.”
The latest confirmation announcement does not clarify the nature of control that Global Brokerage has over FXCM UK. As per the information concerning FXCM Inc, it had the right to appoint and remove directors at FXCM UK and had ownership of 75% or more of the voting rights and shares at the broker. If there is no change other than the name of this PSC, then the same should be valid for Global Brokerage.
In the meantime, Global Brokerage is having hard time remaining listed on NASDAQ, due to low market capitalization. NASDAQ has included the company in its list of noncompliant companies and has issued a notification to Global Brokerage over the low share price which may lead to a delisting. The company has to comply with NASDAQ listing requirements by the end of October this year. A delisting could accelerate Global Brokerage’s debt obligations and could lead to an event of default, the company has warned.