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

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.