FXCM has confirmed it is selling its Hong Kong based Asia subsidiary to Rakuten Securities, one of the leading brokers in Japan, which also controls an internet services company. The deal is believed to have been valued at US$ 36 million.
Rakuten Securities said it would continue to use the FXCM trading system for its Hong Kong clients under a white label agreement with FXCM. The broker said it would be notifying clients once the deal has been finalised.
Drew Niv, CEO of FXCM, said this was “another positive step towards FXCM completing its plan to sell non-core assets and repay the Leucadia loan.”
FXCM in Hong Kong provides CFD trading services primarily to Hong Kong residents. It virtually gave away its share of Faros to investment bank Jefferies in May of this year, a business it originally purchased for over $15 million. It has also already sold off its Japanese subsidiary.
Niv has already told analysts he is aiming to pay off the loan from Leucadia National Corp by the end of the year. Meanwhile, the firm is expected to focus its efforts on core trading markets like Europe, the US and Australia, and claims it will continue to actively serve Chinese traders.