FXCM Names Interim CEO, Changes Name To Global Brokgerage

FXCM Inc. said Tuesday it is changing its name to Global Brokerage Inc. and will trade under the new ticker symbol 'GLBR" effective start of trade Feb. 27. The company also unveiled its choice for interim CEO. The news comes after the Commodity Futures Trading Commission issued an order settling National Futures Association charges against FXCM Chief Executive Dror Niv and Managing Director William Adhout for "engaging in fraudulent activities" with respect to FXCM's retail customers, by telling them they used a "No Dealing Desk" order execution model, meaning orders would be executed directly in the market without using a liquidity provider, or market maker. But in fact, FXCM used a "Dealing Desk" model, by routing orders through market maker Effex Capital LLC that was actually supported and controlled by FXCM, allegedly in exchange for kickbacks to FXCM on profitable trades. There were several other charges in the NFA's complaint, but the gist was that FXCM, Adhout and Niv would be permanently barred from NFA membership, and FXCM could no longer operate in the U.S. FXCM agreed to pay a $7 million fine. On Tuesday, FXCM named Brendan Callan as interim CEO. Callan has been CEO of the company's European operations since 2010. The company also named Jimmy Hallac, a managing director at Leucadia Inc., as chairman. Leucadia came to the rescue of FXCM when it was caught out by the Swiss decision to unpeg the Swiss franc from the dollar in January 2015 and holds a major stake in the company. FXCM shares were not yet active premarket, but have lost 74% in the last 12 months, while the S&P 500 has gained 22%.