Jefferies’ investment in FXCM and connected companies is made up of a senior secured term loan due February 15, 2021 ($71.9 million principal outstanding at May 31, 2019), also a 50% voting interest in FXCM and the vast majority of distributions regarding the equity of FXCM.
Jefferies Financial Group Inc (NYSE:JEF), previously called Leucadia National Corporation, has posted its 10-Q filing for the quarter to end-May 2019 with the Securities and Exchange Commission, together with the record including some advice about Jefferies’ investment in FXCM Group.
Jefferies says its maximum exposure to loss because of its involvement with FXCM is restricted to the carrying value of the expression loan ($56.6 million) and also the investment in associated company ($70.0 million), that totaled $126.6 million in May 31, 2019.
Net earnings from your FXCM term loan contain gains (losses) of (11.4) million and $6.5 million during the second quarter of 2019 and 2018, respectively.
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FXCM Group, LLC is considered a VIE and the term loan and equity ownership are varying interests. Jefferies has decided that it is not the primary beneficiary of FXCM since it doesn’t have the capability to guide the activities that most significantly impact FXCM’s performance. For that reason, it does not combine FXCM and Jefferies account for its equity interest under the equity method because an investment in a related company.
Net earnings from your FXCM term loan comprise profits (losses) of $(11.0) million and $15.1 million during the first half of 2019 and 2018, respectively.
Previously in July, online trading solutions provider Forex Capital Markets Limited (FXCM UK) has published a record via UK Companies House stating that Jefferies Financial Group Inc (NYSE:JEF) is a individual with significant hands for FXCM UK. Jefferies is believed to have significant influence or control .