Jefferies Reports FXCM-related Max Loss Exposure to SEC

​The investment bank and financial services firm Jefferies Financial Group just submitted its quarterly report to the Securities and Exchange Commission (SEC) for the three-month period ending May 31, 2022. The document describes, among other things, Jefferies' collaboration with the online currency trading service provider FXCM.

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In its most recent financial statements, FXCM listed $398.8 million in total assets. The entirety of the carrying value of the term loan ($51.9 million) and the investment in the linked firm ($51.2 million) at May 31, 2022, constitutes Jefferies' maximum exposure to loss as a result of its relationship with FXCM.

As a result, the sum is $103.1 million, which is more than the $99.4 million figure that was reported at the end of the previous quarter.

A senior secured term loan from Jefferies due on May 6, 2023 ($71.6 million in principle was still owed as of May 31, 2022), a 50% voting interest in FXCM, and the right to a majority of all distributions related to FXCM's stock make up Jefferies' investment in FXCM and related firms.