Global Brokerage Inc. (NASDAQ:GLBR), formerly known as FXCM Inc., has informed the US Securities and Exchange Commission (SEC) of a notification from NASDAQ Global Market that it might delist it over falling market cap.
According to the filing, on May 2 NASDAQ informed Global Brokerage that for the prior 30 consecutive business days, the market value of the company’s publicly held shares was less than $15 million. This does not meet NASDAQ’s requirements for continued listing on the exchange.
The notice does not affect immediately FXCM’s listing on Nasdaq Stock Market or on the trading of the Company’s common stock, but there is a stipulation. The market value of Global Brokerage must exceed $15 million for ten consecutive business days between May 2017 and October 30, 2017, to avoid delisting.
FXCM notes that if the market value requirement is not satisfied, it will be informed in written by Nasdaq that its stock would be delisted from the Nasdaq Global Select Market. In that case FXCM will either appeal the decision or apply to transfer its securities to the Nasdaq Capital Market. “There can be no assurance that the Company will remain listed on The Nasdaq Global Select Market after October 31, 2017”, FXCM said.
The US Forex Capital Markets (FXCM Inc.) moved its stocks from NYSE to NASDAQ last September when almost everything about it looked fine and dandy. Then, in February this year, FXCM was severely fined and forced by the regulators to exit the US forex market over significant and continuous violations. The broker was forced to sell its client base to its competitor Gain Capital.
Following those dramatic events, and probably in an attempt to dissociate itself from the events, FXCM Inc. rebranded itself as Global Brokerage Inc.