Global Brokerage, a once partner and stakeholder in the forex and CFD broker FXCM Group, announced it is filing for bankruptcy under Chapter 11 of the United States Bankruptcy Code and is planning to restructure. In the official statement the company also said it is delisting from NASDAQ and is parting ways with some of its board members and senior managers. Also according to the official statement, Global Brokerage has entered into into a restructuring support agreement with around 70% of its noteholders.
Weren't those the guys who used to sponsor on these boards offering cheap $500 margins on futures - just saying
What is going to happen to the money of the forex clients? Will the money in the brokerage account be lost when this broker goes bankrupt? I'm not sure if forex accounts have SIPC protection.
This FXCM. They blew up when SNB gave up on the CHF floor, and a lot of customer accounts went into debt they couldnt collect. Jeffries bailed them out, and their ass belongs to them ever since. This is just Jeffries doing some sort of restructuring. Apparently Fxcm retail client funds are safe.