Global Brokerage registers total stockholders’ deficit of $147M in Q3 2020
FXCM Inc, now known as Global Brokerage Inc (OTCMKTS:GLBR), today posted a Statement of Financial Condition.
Let’s note that the document, which provides a set of numbers, does not represent a filing with the SEC. The company has stopped filing financial reports with the US regulator following its delisting and bankruptcy. Hence, the lack of any explanation for the results being what they are.
The data show that Global Brokerage saw total stockholders’ deficit of $147 million at the end of the third quarter of 2020. This compares with a deficit of $137.5 million at the end of the second quarter of 2020.
Total net revenues for the third quarter of 2020 were $36.54 million, down from $45.27 million in the preceding quarter.
Net loss attributable to Global Brokerage, Inc. was $9.7 million in the quarter to end-September 2020, compared with $6.8 million in the previous quarter.
Global Brokerage has been a defendant in a number of lawsuits. One of these has been launched by investors in the broker. The case stems from the events from February 2017, when FXCM reached settlements with the CFTC and NFA, in a move that led to its exit from the US retail FX market. The price of FXCM’s securities plummeted after the regulatory settlements were announced, thereby damaging investors in FXCM Inc.
The plaintiffs brought this class action suit against FXCM, Dror Niv and William Ahdout, alleging that, from March 15, 2012 until February 6,2017, Defendants committed securities fraud in violation of Sections IO(b) and 20(a) of the Securities Exchange Act of 1934 and Rule l0(b)-5. Specifically, the plaintiffs allege that the defendants were responsible for false or misleading statements with respect to FXCM’s purported agency-trading model and FXCM’s relationship with another company, Effex Capital.