Global Brokerage Inc (NASDAQ:GLBR), which owns 50% of Retail FX broker FXCM Group, has filed its third quarter results with U.S. regulatory authorities indicating that it (as well as FXCM) saw Revenues decline by 11% from the second quarter, $44.0 million in Q3 versus $49.4 million in Q2.
The company(ies) reported a Q3 net operating loss of $4.2 million, down from positive operating income of $2.1 million in Q2. FXCM attributed its lower Revenue and Profitability levels in Q3 to two-year low volatility in the currency markets.
However despite the slower quarter, both GLBR and FXCM are in much better shape than when Q2 was reported.
Global Brokerage indicated over the weekend that it is filing a Chapter 11 reorganization of the company which, with the approval of the company’s convertible noteholders who are owed $172 million, give Global Brokerage five more years to deal with servicing that debt.
FXCM, which has now fully separated itself from GLBR, was also granted a one year extension on its remaining debt to Leucadia National Corp (NYSE:LUK) as part of those same negotiations.
FXCM has engaged in a series of asset and non-core business sales over the past two-plus years in order to pay down its aforementioned loan from Leucadia. Most recently, FXCM helped engineer the sale of its institutional FX ECN unit FastMatch to Euronext NV (EPA:ENX), netting more than $50 million to FXCM.
The only non-core asset left for FXCM to sell is its controlling investment in Lucid Markets. FXCM stated that it is in an active sales process to sell Lucid.