Investment bank and financial services firm Jefferies Financial Group Inc (NYSE:JEF) has just filed its quarterly report for the three-month period to May 31, 2022 with the Securities and Exchange Commission (SEC). The document details, inter alia, Jefferies’ involvement with provider of online Forex trading services FXCM Group, LLC (FXCM).

FXCM reported total assets of $398.8 million in its latest financial statements. Jefferies’ maximum exposure to loss as a result of its involvement with FXCM is limited to the total of the carrying value of the term loan ($51.9 million) and the investment in associated company ($51.2 million) at May 31, 2022.

This results in a total of $103.1 million, higher than the level of $99.4 million reported at the end of the preceding quarter.

Jefferies’ investment in FXCM and associated companies consists of a senior secured term loan due May 6, 2023 ($71.6 million principal outstanding at May 31, 2022), a 50% voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM.

Many factors, most of which are outside of Jefferies’ control, can affect FXCM’s business, including the state of international market and economic conditions which impact trading volume and currency volatility, changes in regulatory requirements and other factors that directly or indirectly affect the results of operations, including the sales and profitability of FXCM, and consequently may adversely affect Jefferies’ results of operations or financial condition.