FXCM Inc Gets Creative on Negative Balance Settlements

FXCM reaches an agreement with a client over negative balances, involving issuing options. According to an 8-K filing with the U.S. Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission, last Thursday on April 15th, 2015, FXCM, Inc. (NYSE: FXCM) entered into an Option Agreement, issuing an option to purchase 569,344 shares of the brokerage’s Class A Common Stock for a purchase price of $550,000.

The exercise price per share of Class A Common Stock issuable pursuant to the Option is $2.25. The Option is exercisable immediately, and will expire in two years from the date of issuance. The contract includes standard anti-dilution protections.

The move by FXCM is part of a negative equity balance Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with a customer of the brokerage. After suffering substantial losses in the aftermath of the Swiss franc debacle on January 15, the company has announced it will forgive 90% of negative balances. Now it seems the broker is resorting to creative ways to settle negative balances with the remaining 10%.