FXCM, also known as Forex Capital Markets, is a retail foreign exchange broker, now run from London after being banned from Fxcm forex States markets for defrauding its customers. 7 million penalty to settle a suit from the U.
FXCM to its customers and to regulators. FXCM withdrew its CFTC registration and agreed not to re-register in the future, effectively banning it from trading in the United States. A Managing Director of Leucadia National Corp, which holds a 49. New York Stock Exchange until early 2017, and then on NASDAQ until its delisting in December 2017, soon after it announced its bankruptcy filing. Global Brokerage Holdings, which owns 50.
Ken Grossman is CEO of Global Brokerage. Drew Niv, who had earlier resigned the position, was interim Chief Executive Officer of Global Brokerage until about May 15, 2017. 1,000,000 if he stays in the position for a full year, but his tenure will terminate in one year. At FXCM Brendan Callan is the CEO and Jimmy Hallac of Leucadia is Chairman of the Board.
At least three sets of lawsuits have been filed against the parent firm, Global Brokerage, Inc. Shareholders contend that they were misled by the company’s initial public offering prospectus or otherwise defrauded by management. Former customers contend that they were defrauded by the claim that they were trading on a «no dealing desk» system. 163 million to convertible note holders. The market capitalization of Global Brokerage, Inc. Forex Capital Markets was founded in 1999 in New York, and was one of the early developers of online forex trading. Initially, the firm was called Shalish Capital Markets, but after one year, rebranded as FXCM.
In January 2003, FXCM entered into a partnership with Refco group, one of the largest US futures brokers at the time. In 2003, FXCM expanded overseas when it opened an office in London which became regulated by the UK Financial Services Authority. By 2005 the online retail forex market began to grow, though it was commonly considered a risky market, full of fraud and speculation. The «dealing desk» or market-maker system of trading with customers created distrust for retail forex traders. Customers could only trade directly with their brokers who took the opposite side of the trade.
Whenever the customer profited, the broker would lose money, creating a conflict of interest. 20 million for «Forex Dealer Members» including FXCM. In December 2010, FXCM went public and began trading on the NYSE, becoming the first forex broker in the US to issue stock to the public. In its IPO prospectus, FXCM described its no dealing desk trade execution. When our customer executes a trade on the best price quotation offered by our FX market makers, we act as a credit intermediary, or riskless principal, simultaneously entering into offsetting trades with both the customer and the FX market maker. We earn fees by adding a markup to the price provided by the FX market makers and generate our trading revenues based on the volume of transactions, not trading profits or losses. The following year, in February and March 2011, several class actions lawsuits were filed against FXCM, alleging fraud and racketeering from deceptive and unfair trade practices, and misleading shareholders during the 2010 IPO.