Forex Capital Markets, the U.S. subsidiary of FXCM Inc., will lay off 56 employees from its Plano office by mid-April as the company prepares to withdraw from business with all U.S. clients.
Forex reported the layoffs Feb. 10 to the Texas Workforce Commission, four days after the company announced settlements with the Commodity Futures Trading Commission and the National Futures Association. The layoffs were announced as a result of the regulatory settlements, which required the New York-based foreign exchange broker to withdraw from the U.S. market, FXCM spokeswoman Jaclyn Sales told Community Impact Newspaper.
Sales did not disclose how many employees would remain at the Plano location. But the 150 settlement-related layoffs FXCM announced nationwide represent approximately 18 percent of the company’s workforce, she said.
“At this time, the [Plano] office will remain open,” Sales said, adding the location would continue to serve non-U.S. clients.
The company’s settlements with regulators stemmed from allegations that the company had an undisclosed interest in a market maker that consistently won the largest share of the company’s trading volume and took positions opposite those of FXCM’s retail clients.
Regulators alleged the company did not disclose this relationship to clients, who had been told their profits and losses on FXCM’s “No Dealing Desk” platform would not affect the company’s bottom line. In fact, regulators said, the market maker in question paid $77 million in rebates to FXCM from 2010 to 2014. Regulators also claimed the company made false statements to the National Futures Association about its relationship to the market maker.
In its settlement announcement, FXCM did not admit to or deny the allegations.
The company, which has offices in Plano, New York and San Francisco, is also moving to rebrand, announcing on Tuesday it would change its name from FXCM Inc. to Global Brokerage Inc. The name change will take effect at the opening of trading on Monday, the company said in a statement.