FXCM offers to buy Gain Capital for $210.4 million. The Brazilian subsidiary of Volkswagen has adopted Bloomberg’s FXGO platform to manage currency risks. Nasdaq OMX plans to clear currency trades. Jens Andersen retiring from Morgan Stanley in New York.
FXCM: The provider of online foreign exchange trading services is offering to buy Gain Capital Holdings for $5.35 per share or $210.4 million in overall value.
Gain shareholders would get 0.3996 shares of FXCM Class A common stock for each share held of Gain common stock. FXCM also is offering as much as $50 million in cash for Gain shares.
FXCM provides institutional services and handles large block trades, but primarily serves retail investors. Gain Capital provides execution, clearing, custody and technology products and services to an institutional client base including asset managers, broker-dealers and other financial services firms.
The combination of the two online foreign exchanges services would create a company with revenues of about $569 million a year and cash flow of about $175 million.
FXCM has about $417 million in annual revenue and Gain $151 million.
VOLKSWAGEN: The Brazilian subsidiary of the German automobile manufacturer has adopted Bloomberg’s trading platform FXGO to manage its global currency risks.
Volkswagen Brazil now also uses FXGO to manage foreign exchange exposure for Volkswagen Argentina, and plans to use the platform with other subsidiaries across South America.
FXGO is part of the Bloomberg Professional service, which is also used by Volkswagen Brazil to monitor global news and financial market data, communicate with global counterparties and evaluate economic outlooks.
In Brazil since 1953, Volkswagen Brazil is the country’s largest manufacturer of automobiles and light commercial vehicles and the largest automotive segment exporter.
“We are providing the Volkswagen Brazil team a simple, commission-free (service) that empowers them to manage their currency exposure,” said Geraldo Coelho, Bloomberg’s Head of Sales for South America.
Bloomberg FXGO electronically executes eligible spot, outright, swap, non-deliverable forward (NDF), deposit and option transactions with roughly 300 providers of buy or sell orders.
NASDAQ OMX: The exchange operator and services provider plans to develop an over-the-counter foreign exchange clearing service in November, according to Risk.net.
Nasdaq OMX Group completed the acquisition of NOS Clearing ASA of Oslo in July. .
Nasdaq OMX said at the time it planned “to strengthen its offering to the global commodity markets” by marrying services of Nasdaq Commodities with NOS Clearing.
Nos clears forwards, swaps, options, nondeliverable forwards and spot foreign exchange contracts. A Nasdaq OMX vice president in Stockholm, Mikael Estvall, said the intent is to clear Group of 20 currencies.
Nasdaq OMX also could get involved in cross-asset clearing, allowing institutions to use a “single pot” of collateral to meet margin requirements.
MORGAN STANLEY: Jens Andersen is retiring as head of foreign exchange emerging market Americas trading at Morgan Stanley in New York.
Andersen joined Morgan Stanley in 1998 as a senior forwards trader in London, according to FXWeek. He was promoted to head of FX trading for the Americas in 2008.
He left after one month to go to work for a New York hedge fund, then returned to Morgan Stanley.
