Global Brokerage registers total stockholder deficit of $72.36m in Q3 2018

Maria Nikolova

The company reported a net loss of $12.97 million for the three months to September 30, 2018.

Global Brokerage Inc (OTCMKTS:GLBR), formerly known as FXCM Inc, has posted a set of metrics for the third quarter of 2018. The company, whose Chapter 11 case was closed this summer, saw its stockholders’ deficit widen further in the three months to September 30, 2018, and reported a net loss for the period.

Those of FinanceFeeds’ readers who have been monitoring the recent financial reports by Global Brokerage are probably aware that these lack the details we are used to see in a SEC filing or the press releases FXCM Inc used to post. The report for the third quarter of 2018 contains the main financial metrics one would expect to see in a quarterly report but does not offer any explanation for the numbers.

Let’s note the basics. Global Brokerage registered a net loss of $12.97 million for the three months to end-September 2018. This compares to a net loss of $16.55 million registered in the second quarter of 2018.

The stockholders’ deficit grew compared to the preceding quarter. It exceeded $72.36 million at the end of the third quarter of 2018.

During the quarter, Drew Niv and Global Brokerage had a case against them dismissed in New York. In August, Judge Kimba M. Wood of the New York Southern District Court ruled in favor of the defendants in a lawsuit concerning the events around January 15, 2015.

The plaintiff – Retirement Board of the Policemen’s Annuity and Benefit Fund of Chicago, acting on behalf of the Policemen’s Annuity and Benefit Fund of Chicago, had brought this putative securities class action against FXCM Inc. (“FXCM”) and Dror Niv. The plaintiff alleged that FXCM and Niv had made material misstatements and omissions concerning risks in FXCM’s business. The defendants have moved to dismiss the plaintiff’s Second Amended Complaint for failing to adequately allege (i) that Defendants made a materially false statement, (ii) that Defendants acted with scienter, and (iii) loss causation.

The Judge granted the defendants’ motion to dismiss because the plaintiff had failed to adequately allege that FXCM Inc and Niv made material misrepresentations or omissions and acted with scienter.

Read this next


US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products.