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NFA issues official FXCM permanent ban: Update of client transfers
13/03/2017
NFA issues official FXCM permanent ban: Update of client transfers

The United States watchdog NFA issues official FXCM permanent ban following fraudulent solicitations that led the firm a penalty of $7 million. How much did Gain Capital pay for FXCM’s client account transfer?

13 March, AtoZForex – The US National Futures Association (NFA) applies a permanent bar on the Forex industry giant FXCM. Forex Capital Markets LLC is officially no more a part of the US financial market. CFTC forced FXCM to exit the US Forex market because of the charges of being engaged in fraudulent and misleading solicitations. In addition, the company got a civil monetary fine of $7 million. The resulting settlement led to banning FXCM and three of the firm’s principals by the US watchdogs NFA and CFTC.

NFA issues official FXCM permanent ban

NFA issues official FXCM permanent ban namely a principal permanent bar and an NFA member permanent bar. The company has six US regulations withdrawn effective March 10, 2017. The withdraws include Forex Dealer Member, Forex Firm, Futures Commission Merchant, and Retail Foreign Exchange Dealer. Following settlements with US regulators last month, Drew Niv and William Ahdout officially abandoned their NFA registration on March 9, 2017.

Together with the resignation of Drew Niv and William Adhout, Leucadia National that came as a life saver for FXCM in 2015 gained more control over its board. FXCM Inc. has changed its name to Global Brokerage Inc. from February 27, 2017, onwards. Moreover, the company will be trading under its new ticker symbol “NASDAQ:GLBR” through the new CUSIP 37891B109.

Will Gain Capital pay for the acquisition?

More than a month following the settlements, FXCM.com has now become a landing page. It is redirecting to non-US subsidiaries of the broker that includes to Bermuda-registered unregulated division FXCM markets. The web page does not contain any FXCM details now.

The transfer of US retail Forex accounts of FXCM has been done to the retail Forex division of GAIN Capital that is Forex.com. Both FXCM and GAIN Capital are in agreement to successfully transfer 47,000 accounts, but questions regarding the trading activity of the new customers are still looming. Hence, it is this trading activity that will decide the price GAIN Capital will pay for the acquisition.

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