What happend to FXCM and Hotspot in Feb?

Discussion in 'Forex Brokers' started by jm73, Apr 10, 2006.

  1. ignatius

    ignatius

    Why don't you just call them to find out?
     
    #11     Apr 13, 2006
  2. PeteHS

    PeteHS

    We have received several inquiries and have noted comments concerning our Adjusted and Excess Net Capital for the month ending February 28, 2006, as reflected in the selected financial information for futures commission merchants (FCMs) published on the Commodity Futures Trading Commission’s (CFTC’s) website. This information, drawn from the monthly financial reports that Hotspot FXR, as a registered FCM, files with the CFTC's Division of Clearing and Intermediary Oversight, indicates that Hotspot FXR had negative Adjusted and Excess Net Capital as of February 28.

    This apparent capital deficiency arose because, solely for purposes of calculating its adjusted net capital under applicable CFTC rules and interpretations, Hotspot FXR was required to reclassify customer funds deposited with Deutsche Bank AG’s New York Branch as being a “non-current” asset. Consequently, Hotspot FXR’s “current” liabilities to its customers were not offset with “current” assets, resulting in an apparent capital deficiency. We must emphasize that, at all times, customer funds were held in a properly designated account at Deutsche Bank and Hotspot FXR’s own capital was not significantly changed from prior months.

    Since February 28, Hotspot FXR has adjusted the terms and conditions of its account with Deutsche Bank to assure that the customer funds on deposit with Deutsche Bank are treated as current assets under applicable CFTC rules. As a result of this change, Hotspot FXR’s Adjusted and Excess Net Capital, for the month ended March 31, 2006, as reported to the CFTC is $2,272,278 and $2,022,278, respectively. This information is now posted on the CFTC’s website.

    Hotspot FXR LLC’s balance sheet is strong and continues to grow stronger.
    Hotspot has been acquired by Knight Securities (NITE), a company with a market capitalization of roughly $1.45 Billion. We are very excited about the prospects for our company and the opportunities that this new relationship will entail.

    My apologies for not replying to this thread earlier but the March figures were not published on the CFTC site until yesterday.


    Peter Neczesny
    Vice President
    Hotspot FXR
    545 Washington Blvd.
    Jersey City, NJ 07310
    Main phone (201) 356-1774
    Direct phone (212) 209-1413
    Fax (908) 322-4192
    email pneczesny@hotspotfx.com



    Hotspot FXR is a CFTC Registered Futures Commission Merchant and a member of the National Futures Association, NFA # 0351580. On the NFA website, URL www.nfa.futures.org, a background affiliation status information center (BASIC) search area is provided.
     
    #12     May 10, 2006
  3. As for fxcm, on the data from february, they are listed twice. Once as forex capital markets inc and once as fxcm inc. I enquired why...they said fxcm inc was a division of forex capital markets. Forex capital markets inc's capital was in the range of 20 or 30 million I believe
     
    #13     May 10, 2006
  4. Please disregard my above post, as it is not relevent to the thread...I misunderstood the earlier post
     
    #14     May 10, 2006