Global Brokerage, f/k/a FXCM Inc, reports wider stockholders’ deficit in Q1 2020

Maria Nikolova

At the end of the first quarter of 2020, the total stockholders’ deficit stood at $131.2 million.


Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, has posted its key financial metrics for the first quarter of 2020, with stockholders’ deficit continuing to expand.

Total stockholders’ deficit reached $131.17 million, which is bigger than the $123.6 million registered at the end of 2019.

Total net revenues for the period amounted to $39.7 million, whereas operating expenses amounted $33.5 million. Operating income for the first quarter of 2020 was $6.2 million. The net loss attributable to Global Brokerage Inc was $6.9 million, or $0.83 per share.

Let’s note that, according to the latest 10-Q report by Jefferies Financial Group Inc (NYSE:JEF), formerly known as Leucadia National Corporation, that is the report for the quarter to end-February 2020, net revenues from Jefferies’ FXCM term loan include gains of $2.5 million and $0.5 million during the first quarter of 2020 and 2019, respectively.

The document shows Jefferies’ estimates regarding its involvement with FXCM. Jefferies’ maximum exposure to loss as a result of its involvement with FXCM is limited to the carrying value of the term loan ($61.6 million) and the investment in associated company ($68.4 million), which totaled $130 million at February 29, 2020. This compares to $129.3 million at November 30, 2019.

During February 2017, Global Brokerage Holdings and FXCM’s U.S. subsidiary, Forex Capital Markets LLC (FXCM U.S.) settled complaints filed by the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) against FXCM U.S. and certain of its principals relating to matters that occurred between 2010 and 2014. As part of the settlements, FXCM U.S. withdrew from business and sold FXCM U.S.’s customer accounts.

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