Months after FXCM’s US exit, companies with similar names emerge in Britain

Maria Nikolova

A number of companies bearing similar (or virtually the same) names as those of the entities within the FXCM “family” get registered in the UK.

More than seven months have passed since the United States Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) published the findings of investigations into FXCM’s US operations. As most of you probably remember, these findings led to the broker’s exit from the US retail FX market, whereas FXCM Inc changed its name to Global Brokerage Inc (NASDAQ:GLBR).

While the low price of Global Brokerage shares leaves the door open for a NASDAQ delisting and raises chances of a corporate default, FXCM has sought to distance itself from Global Brokerage. That was sort of an expected move, given the troubles Global Brokerage is going through, and the repeated claims that FXCM non-US operations, which continue under the FXCM brand, would not be affected by what happened in the US in February.

Forex Capital Markets Limited, also known as FXCM UK, has even asserted that it would not face any action from the Financial Conduct Authority (FCA). In May this year, FXCM UK said that “no customer detriment to the Company’s clients has occurred, neither have clients been misled as to the execution policies of FXCM Group. 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.”

It seems that the UK is safe haven for FXCM.

It is in the UK that companies with similar (or virtually the same) names as entities within the “FXCM family” have emerged. FinanceFeeds research points to at least three such companies that have recently appeared in the Registrar of Companies for England and Wales.

  • Global Brokerage Ltd

Global Brokerage Ltd was incorporated on July 10, 2017. Its address is: Shah House, 1 Browning Street, Bradford, West Yorkshire, England, BD3 9AB. The nature of business stated is: “Other business support service activities not elsewhere classified”. There is one person with significant control – Mr Sayyed Imran Shah.

  • Forex Capital Market SA Ltd

Forex Capital Market SA Ltd was incorporated on June 26, 2017, with its registered office address being 14-16 Tiller Road, London, United Kingdom, E14 8PX. The nature of business is defined as “Activities of real estate investment trusts”. The person with significant control is Mr Derrick Safiye Ali, also known as Derrick William James Devonport.

  • Forex Capital Markets SA Limited

Forex Capital Markets SA Limited was incorporated on July 10, 2017, with its registered office address being Docklands Business Centre 14-16 Tiller Road, London, United Kingdom, E14 8PX. The nature of business is defined as “Activities of real estate investment trusts”. The person with significant control is Mr Kishen Kumar Bhantoo.

We cannot claim that these entities have anything to do with any FXCM business. FXCM typically reports the full list of its subsidiaries in its annual report that it files with United States Securities and Exchange Commission (SEC). These companies were registered after the latest such report was filed so we have no solid information on whether they are in any way related to FXCM.

There is a small chance that the use of these names is pure coincidence. There is a small chance that someone liked the name and decided to make use of the brand popularity.

Also, let’s note that “Global Brokerage” is a wide-spread designation. Moreover, when FXCM Inc changed its name to Global Brokerage Inc it was not the single company to use “Global Brokerage” in its name.

FinanceFeeds’ search within the database of the Delaware Business register shows there are several companies using “Global Brokerage” in their names. It could be one of the risks associated with having a common combination of words in the business name.

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”