| NEW YORK
NEW YORK Feb 21 Embattled U.S. currency broker
FXCM Inc said on Tuesday it has changed its company
name to Global Brokerage Inc, two weeks after it had been
ordered by the Commodities Futures Trading Commission to cease
operations in the United States for fraud.
In a statement, FXCM said it will also change its ticker
symbol to GLBR. The change in the company name and ticker is
effective Feb. 27.
The company also announced the promotion of Brendan Callan
to interim chief executive officer, replacing Drew Niv, who
resigned from the firm. Niv also resigned as director of FXCM
FXCM was banned earlier this month by the CFTC from doing
business in the United States for betting against its customers
in trades. The commission also ordered Forex Capital Markets,
its parent FXCM Holdings LLC and founding partners Drew Niv and
William Ahdout to pay $7 million to settle charges it had
defrauded retail foreign exchange customers.
Niv and Ahdout were also banned from acting a principal,
agent, officer, or employee of any person or firm that is
required to be registered, or exempted from registration with
Ahdout has also resigned as director of the FXCM Group
Callan, who joined in 2001, has been the CEO and president
of the European operations since 2010, a period during which
Forex Capital Markets Limited or FXCM UK became the group's
largest operating subsidiary.
FXCM also announced Jimmy Halac has been appointed chairman
of FXCM Group. Hallac is managing director of Leucadia National
Corp, which rescued FXCM with a roughly $200 million
loan after the Swiss National Bank unpegged the Swiss franc from
the euro in January 2015.
Leucadia holds a significant interest in FXCM Group.
"Brendan and Jimmy share our deep commitment to always
putting clients first, maintaining and building a culture of
transparency, communication and support among employees, and
responding to the needs and goals of all relevant
constituencies, including FXCM's customers, employees,
regulators, business partners and equity owners," said Rich
Handler and Brian Friedman, Leucadia's CEO and president,
Sources also told Reuters that FXCM employees say staff in
London have been told to seek new employment and that the
company plans to move out of its current location in the heart
of the City of London.
In midday trading, FXCM was down 1.7 percent at $2.85. Since
the CFTC's decision on Feb. 6, the stock has lost nearly 58
percent of its value.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Patrick Graham in London; Editing by Marguerita Choy)