Global Brokerage, formerly FXCM Inc. and parent of operating company FXCM Group LLC, today announced total net losses of $29.9 million for the first quarter of 2017. Although the figures are gloomy, they represent a distinct improvement on last year’s net losses of $74.1 million.
In February 2017, the company sold its US domiciled accounts to Gain Capital Holdings Inc. and withdrew from registration in the country. Results for US operations for both 2016 and 2017 were reclassified as ‘discontinued’.
Along with the results, Global Brokerage also announced the appointment of Ken Grossman as its new CEO. Grossman replaces disgraced CEO Drew Niv, who resigned in the wake of a financial scandal in which he was fined $7 million by the CFTC for misleading customers regarding the nature of the firm’s market making activities. In addition, Niv and FXCM were both banned from FX trading on the US market. Ken Grossman, co-founder and former Chief Financial Officer at FXCM joins Global Brokerage on a limited contract of one year. In addition to a salary of $600,000, he will receive a $1 million bonus if he remains in the the post for the entire twelve months.
Yesterday, Brendan Callan was promoted from interim to effective CEO of FXCM. Of the announcement, Jimmy Hallac, chairman of the board of FXCM Group and Managing Director of Leucadia, said: “Leucadia National Corporation and the FXCM Group board believe that Brendan is ideally suited to be FXCM’s CEO. He combines deep knowledge of FXCM and its customers with the values that have served Leucadia’s investee companies so well: putting clients first, building a culture of transparency, communication and support among employees, and being responsive to all stakeholders.”
Brendan Callan said: “I am extremely excited for the opportunity to continue building upon FXCM’s global platform. We will continue to work diligently to establish FXCM as the leading online retail FX and CFD trading venue in each of the regions we operate. We intend to do so by addressing the needs and goals of our customers, employees, regulators, business partners and equity owners.”
In other news, FXCM Group LLC reported lower trading volumes in April, down by 22% month-on-month and down by 41% year-on-year, at $176 billion. Average daily volume (ADV) was of $8.8 billion in April 2017, 10% lower than March 2017 and 38% lower than April 2016. Active accounts are down by 1,466 to 129,366, down by 1% month-on-month and down by 3% year-on-year.