The wind-down of FXCM US retail FX operations is set to generate substantial cost savings, according to the broker.
Further to last week’s reports that FXCM Inc (NASDAQ:FXCM) is leaving the US FX market, following regulatory action, and is selling its US retail FX client base to Gain Capital Holdings Inc (NYSE:GCAP), there has been a small update regarding the financial situation of FXCM’s US operations and the transfer.
Several hours ago, FXCM announced that none of the costs associated with its US retail Forex activities will be transferred to GAIN.
In fact, FXCM expects “significant cost savings” from the disposal of its US retail FX business. The broker quotes its metrics for the first nine months of 2016, which show that FXCM US incurred a $13.89 million net loss in the period, whereas the consolidated FXCM Inc continuing operations generated a net income of $125.97 million. [Read more... http://snip.ly/k5vxl ]