Investment bank and financial services firm Jefferies Financial Group Inc (NYSE:JEF) has just filed its annual report for the year to end-November 2021 with the Securities and Exchange Commission (SEC), with the report offering an update on Jefferies’ involvement with FXCM Group LLC (FXCM).

Jefferies says its 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 ($50.5 million) and the investment in associated company ($49.0 million) at November 30, 2021. Hence, the total exposure was limited to $99.5 million at the end of November 2021. This is lower than the $109.5 million estimate reported for the quarter to August 31, 2021.

Jefferies’ investment in FXCM and associated companies consists of a senior secured term loan due February 15, 2022 ($71.6 million principal outstanding at November 30, 2021), a 50% voting interest in FXCM and rights to a majority of all distributions in respect of the equity of FXCM.

FXCM reported total assets of $387.9 million in its latest financial statements.

At November 30, 2021, Jefferies had an approximately $99.4 million investment in 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.