GAIN Capital enters into definitive agreement for acquisition of FXCM’s clients in US

Maria Nikolova

GAIN Capital confirms that it has entered into a definitive agreement to take over the client base of FXCM in the US.

Gain Capital Holdings Inc (NYSE:GCAP) has provided an update regarding its discussions with FXCM Inc (NASDAQ:FXCM) regarding the acquisition of the clients base of FXCM’s US operations. GAIN has just announced that it has entered into a definitive agreement with FXCM on the acquisition and that FXCM’s US regulated business will be transferred to GAIN Capital’s retail trading service,

invast pureprimeThe transaction, the financial terms of which are not disclosed, is set to close before the end of February 2017, subject to regulatory permissions.

GAIN initially unveiled it was in talks with FXCM early on Tuesday, following the announcements by US regulators that banned FXCM, its CEO Drew Niv and senior Managing Director William Ahdout from the US market. The rough measures were imposed after the regulators discovered that during several years, the broker traded against its customers while claiming to use a no dealing desk model.

FXCM is exiting the US retail FX market, with the move translating (amid other things) into the lay-offs of 150 employees, or approximately 18% of FXCM international workforce.

Earlier today, FastMatch, in which FXCM owns a stake, has announced board changes. The financial technology company said that former directors Drew Niv and William Ahdout are replaced by Brian Friedman, President, and Jimmy Hallac, Managing Director, of Leucadia National Corp. (NYSE:LUK).

More importantly, FastMatch reiterated that “FXCM is a passive minority owner of FastMatch. FastMatch operates as a completely independent entity of FXCM with no operational dependencies between two firms”. The stance is in tune with FinanceFeeds’ view that FastMatch will try to distance itself from FXCM.

The GAIN Capital – FXCM deal is set to add weight to Gain’s presence in the United States. GAIN is regulated in eight jurisdictions, with approximately 140,000 customers. According to GAIN’s latest announcement, for the three months to the of December 2016, average daily volume from customers of FXCM’s US operations was around $2.4 billion.

Read this next

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

Digital Assets

BingX publishes Proof-of-Reserve report by auditor Mazars to address general distrust in crypto

“It is our responsibility to help our customers know their platform and feel safe. They should only trade in regulated and licensed exchanges or one showing them proof when they need it.”