The big story in retail FX today is FXCM. Shares are halted after falling to $1.46 from $12.46 and $17.00 at the start of the week. The company said it lost $225m yesterday and based on those pre-market prices, the market cap is now below $100m.
There is chatter about consolidation in the industry with GAIN and others said to be on the prowl.
Gain CEO Glenn Stevens said “Following the events of January 15, 2015, we remain well capitalized, financially sound and well positioned to grow market share and, as one of the industry’s leading consolidators, take advantage of the strategic acquisition opportunities that will result from yesterday’s events.”
In the past 6 months, insiders have sold off 26% of their holdings according to BBG data and just on Tuesday, former chief dealer Michael Romersa sold 10,550 shares at $17.01, according to regulatory filings. There doesn’t seem to be anything nefarious in the timing as he’s been selling them regularly. The tally on the sale was around $175,000 and he sold roughly $8m in shares last year and his stake was still worth more than $6m on Wednesday.
Update: Now there are rumors that Jefferies is looking at FXCM for $200m. It’s a good sign that there is a market for brokers. There’s talk of a statement in 3 hours (2 pm ET-ish)
