FXCM Q3 Slide Deck

7/30/2019 FXCM Q3 Slide Deck

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Revenues of $115.0, +5% from Q3/11 GAAP EPS of $0.17/share Adjusted Pro Forma EBITDA of $37.2M, +18% from Q3/11 EBITDA margin on revenues net of referring broker fees of 39% Adjusted Pro Forma EPS of $0.17/share Adjusted Pro Forma Cash EPS of $0.31/share

Revenue per million of $99/million high end of traditional range Client equity +22% YTD to $1.3 billion Small client initiative launched globally in October

Lucid - solid quarter with $22.2M in revenues and $15.1M in EBITDA

Migration of FXCM institutional platform regaining momentum

Announcing repurchase program of $51.5 million incremental to the $28.5 million already repurchased FXCM finished Q3 with $242 million of gross operating cash (adjusting for Lucid minority interest of 50% of Lucids $36M

of operating cash) In addition, credit facility has been upsized to $155 million

(1) Adjusted Pro Forma EBITDA that represents our earnings before interest, taxes, depreciati on and amortization, Adjusted Pro Forma Cash EPS and Adjusted Pro Forma EPS are non-GAAP financial

measures and excludes certain extraordinary and non-cash items; reconciliations of these measures to the most directly comparable GAAP measures are available in the appendix to this presentation.* Definitions of certain operating metrics are available in the appendix to this presentation.


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3* Definitions of certain operating metrics are available in the appendix to this presentation; totals made not add due to rounding

350,349

438,599 423,413378,837 367,051

345,790

-

100,000

200,000

300,000

400,000

500,000

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

$100 $93 $98 $94$90

$99

$-

$20

$40

$60

$80

$100

$120

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 20126

8

10

12

14

16 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12

451 461 459 490 387 421

269 316 271 272 275 260

89124 112 95

101 92

128141

131 128106 89

-

200

400

600

800

1,000

1,200

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

Asia EMEA US ROW

$938$1,042 $972 $985

$869 $861


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($ in millions)

Customer Cash Balance

Total Active Accounts (1)

(1) An account that has traded at least once in the previous twelve months(2) Totals may not add due to rounding

86,149

116,919136,427

163,094171,274

50,000

100,000

150,000

200,000

2008 2009 2010 2011 Q3/12

$253$354

$464 $547

$740

$178$138

$151$362

$387

$200

$400

$600

$800

$1,000

$1,200

$1,400

2008 2009 2010 2011 Q3/12

FXCM ODL Japan

63% 64% 64%69% 70% 72%

74% 75%

-

50,000

100,000

150,000

200,000

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Standard Micro

Active Account Mix

75%

Client equity + 22% from YE 2011


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Q3 volumes reflect the low volatility conditions coupled with de-risking of banks & less large orderssweeping book (traditionally where FXCM Pro most reliant)

Expect an acceleration in Q4/12 of migrating customers to our in-house platform

$25

$17$15

$18

$23

$-

$10

$20

$30

$40

$50

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

$309

$429$398 $402

$156

$-

$100

$200

$300

$400

$500

Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012


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Lucid performing well in low volatility environmentRevenue synergies with FXCM still to come

Lucid revenues -8% from Q2ICAP volume (-17% Q3 vs. Q2), CME (-7%) and Hotspot (-15%)

EBITDA margin of 68% for Q3/12

$21.7$24.0

$22.2

$13.5$16.6 $15.1

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Q1 2012 Q2 2012 Q3 2012

Revenues EBITDA


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7* On a Adjusted Pro Forma basis; see attached reconcili ation of non-GAAP financial measures and a reconciliation of Adjusted Pro Forma income to U.S. GAAP results. Certain totals may not foot due torounding.

($ In Thousands) 2012 2011 % Change 2012 2011 % ChangeRevenues

Retail trading revenues 85,237$ 97,017$ -12% 255,833$ 268,234$ -5%Institutional trading revenues 25,868 7,720 235% 42,908 21,820 97%

Trading reveuue 111,105 104,737 6% 298,741 290,054 3%

Interest Income 990 963 3% 2,910 2,837 3%Brokerage interest expense (66) (93) -29% (235) (226) 4%

Net interest income 924 870 6% 2,675 2,611 2%

Other Income 2,919 3,368 -13% 7,805 14,228 -45%Total net revenues 114,948 108,975 5% 309,221 306,893 1%

18,708 25,720 -27% 58,865 72,253 -19%Net revenues 96,240 83,255 16% 250,356 234,640 7%

ExpensesCompensation and benefits 21,778 20,835 5% 62,717 62,142 1%Advertising and marketing 7,509 9,870 -24% 23,266 24,375 -5%Communication and technology 9,600 8,190 17% 26,591 23,559 13%Trading costs, prime brokerage and clearing fees 6,981 2,095 233% 10,187 6,484 57%General and administrative 13,180 10,840 22% 44,465 32,610 36%

59,048 51,830 14% 167,226 149,170 12%

EBITDA 37,192 31,425 18% 83,130 85,470 -3%

Depreciation and amortization 11,717 5,367 118% 24,761 14,201 74%Interest on borrowings 1,158 - 1,698 -

Income before income taxes 24,317 26,058 -7% 56,671 71,269 -20%Income tax provision 7,397 8,932 -17% 18,489 24,820 -26%

Net income 16,920 17,126 -1% 38,182 46,449 -18%

4,381 - 5,254 - Net income attributable to FXCM Inc. 12,539$ 17,126$ -27% 32,928$ 46,449$ -29%

75,103 74,449 1% 73,548 74,978 -2%

0.17$ 0.23$ -26% 0.45$ 0.62$ -27%

Referring broker fees

Three Months EndedSeptember 30,

NIne Months EndedSeptember 30,

Pro Forma fully exchanged, fully diluted sharesoutstanding

Net income attributable to non-controlling interest

Adjusted Pro Forma net income per fullyexchanged, fully diluted shares outstanding


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8* Under U.S. GAAP. Certain totals may not foot due to rounding. See accompanying notes to the consolidated financial statements

September 30, December 31,2012 2011 $ Change

AssetsCurrent assets

Cash and cash equivalents 260,026$ 184,721$ 75,305$Cash and cash equivalents, held for customers 1,278,392 1,046,983 231,409 Other current assets 38,291 27,313 10,978

Total current assets 1,576,709 1,259,017 317,692

Office, communication and computer equipment, net 49,793 39,686 10,107 Intangible assets and goodwill, net 413,321 80,656 332,665 Other assets 129,815 107,774 22,041

Total assets 2,169,638$ 1,487,133$ 682,505$

Liabilities and EquityCurrent liabilities

Customer account liabilities 1,278,392$ 1,046,983$ 231,409$Credit Agreement 30,000 - 30,000 Note payable 87,162 - 87,162 Other current liabilities 90,731 76,034 14,697

Total current liabilities 1,486,285 1,123,017 363,268

Other liabilities 103,730 70,683 33,047

Total liabilities 1,590,015 1,193,700 396,315

Commitments and Contingencies

Stockholders' equityTotal stockholders ' equity FXCM Inc. 211,603 95,421 116,182 Non-controlling interes t 368,020 198,012 170,008

Total stockholders' equity 579,623 293,433 286,190

Total liabilities and stockholders' equity 2,169,638$ 1,487,133$ 682,505$


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Non-cash expenses, in particular $5.3M in quarterly intangible amortization of Lucid and $0.8M inquarterly non-cash Lucid compensation expense in Q3 increasing as a proportion of total expenses

FXCM generating significant cash flow

FXCM finished Q3 with $242 million of gross operating cash (adjusting for Lucid minority interest of 50% of Lucids $36M of operating cash)

Have now completed the upsizing of FXCM credit facility to $155 million

$0.17 $0.17

$0.31

$-

$0.10

$0.20

$0.30

$0.40

Q3 2012

GAAP EPS Proforma EPS* Proforma Cash EPS*

$25.5$28.5

$31.4

$26.4 $24.9$21.0

$37.2

0

10

20

30

40

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012

* On a Adjusted Pro Forma basis or Adjusted Pro Forma Cash basis; see attached reconciliation of these non-GAAP financial measures to U.S. GAAP results. Certain totals may not foot due to roundi ng.


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Announcing today a repurchase program of $51.5 millionIncremental to the $28.5 million already repurchased

Management believe repurchasing FXCM shares represent an attractive use of capital at current price levels

With upsized credit facility & internal cash generation, does not preclude alsomaking acquisitions that are potentially more accretive than buybacks

As always, we will manage based on factors including cash generation,available free cash, our stock price and alternative uses


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$347 $324 $328$290 $287

$324

$-

$100

$200

$300

$400

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

U S B i l l i o n s

438.6 423.4378.8 367.1 345.8 341.3

-

100.0

200.0

300.0

400.0

500.0

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

156.1163.1

171.3 174.2 171.3 170.2

120.0

140.0

160.0

180.0

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

$15.8 $15.0 $15.2 $13.4 $13.2$14.1

$-

$5.0

$10.0

$15.0

$20.0

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

U S B i l l i o n s

$103

$143 $133 $134

$52 $53

$-

$50$100

$150

$200

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

$4.7

$6.6 $6.2 $6.2

$2.4 $2.3

$-

$2.0

$4.0

$6.0

$8.0

Q3

2011

Q4

2011

Q1

2012

Q2

2012

Q3

2012

Oct-12

U S B i l l i o n s

U S B i l l i o n s

(in 000s)

(in 000s)

Strong start to Q4/2012


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Solid quarter in weak market conditionsWill continue to focus on controlling costs and buying back shares whileheadwinds persist

Strong performance from Lucid

Retail small client initiative now launched globally

FXCM generating significant cash flow and has lots of flexibility

Share repurchase program of $51.5 million now in place Attractive use of capital at current price levels

Continue to pursue M&A opportunities that meet our price/return criteriaIndustry consolidation continues especially among mid size brokersBid/ask spread among larger brokers still wide; prices exceed our returnthresholds


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(1) Net account additions represents new accounts funded les s accounts closed by our customers.

(2) Micro accounts are accounts with limi ted customer service and permitted to trade in very small lo t sizes; this account option was introduced in June 2008.

(3) A tradeable account represents an account with sufficient funds to place a trade in accordance with firm policies.

(4) An active account represents an account that has traded at least once in the previous 12 months.

(5) Daily average trades per acti ve account represents the total daily average trades per av erage active account in the period.

Net Account Additions (1) (2,717) 4,979 5 ,526 23,287 181 29,425 (33,527) 568

-Standard Accounts (1,408) 4,839 4,320 22,101 (1,730) 28,832 (19,253) 3,522

-Micro Accounts (2) (1,309) 140 1,206 1,186 1,911 593 (14,274) (2,954)

Total Tradeable Accounts (3) 202,394 205,111 200,132 194,606 171,319 171,138 141,713 175,240

-Standard Accounts 155,908 157,316 152,477 148,157 126,056 127,786 98,954 118,207

-Micro Accounts (2) 46,486 47,795 47,655 46,449 45,263 43,352 42,759 57,033

Total Active Accounts (4) 171,274 174,218 171,296 163,094 156,053 154,786 139,900 136,427

Total Customer Trading Volume (dollars inbillions)

$ 861 $ 869 $ 985 $ 972 $ 1,042 $ 938 $ 822 $ 836

Trading Days in Period 65 65 65 65 66 65 64 66

Daily Average Trades 345,790 367,051 378,837 423,413 438,599 350,349 309,777 317,658

Daily Average Trades per Active Account(5)

2.0 2.1 2.3 2.7 2.8 2.4 2.2 2.3

Retail Trading Revenue per Million Traded $ 99 $ 90 $ 94 $ 98 $93 $ 100 $ 95 $ 100

Total Customer Equity (dollars in millions) $ 1,278.4 $1,254.7 $ 1,135.9 $ 1,047.0 $828.2 $839.0 $ 775.1 $ 641.2

Customer Trading Volume by Region(dollars in billions)

-Asia $ 421 $ 387 $ 490 $ 459 $ 461 $ 451 $ 348 $ 310

-EMEA 260 275 272 271 316 269 250 255

-United States 92 101 95 112 124 89 106 108

-Rest of World 89 106 128 131 141 128 118 163

Total


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2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

Revenues 114,948 108,975 114,948 108,975 114,948 108,975 309,221 306,893 309,221 306,893 309,221 306,893

Net income attributable to FXCM Inc. 12,539 17,126 22,942 27,415 4,513 3,398 32,928 46,449 65,497 72,563 5,960 9,509 Net income a ttributable to noncontrollinginterest 4,381 - 7,063 - 13,327 12,142 5,254 - 8,244 - 22,971 28,222

Provision for income taxes 7,397 8,932 7,167 4,102 3,598 8,136 18,489 24,820 9,536 12,999 4,856 10,756 Depreciation, amortization and interestexpense 12,875 5,367 1,158 - 12,875 5,367 26,459 14,201 1,698 - 26,459 14,201 EBITDA 37,192 31,425 38,330 31,517 34,313 29,043 83,130 85,470 84,975 85,562 60,246 62,688

Three Months Ended September 30, Nine Months Ended September 30,

Adjusted Pro Forma CashAdjusted Pro Forma Adjusted Pro Forma U.S. GAAPU.S. GAAPdjusted Pro Forma Cash


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* See footnotes following

Adjusted AdjustedAs Adjusted Pro Forma As Adjusted Pro Forma

Reported Adjustments Pro Forma Adjustments Cash Reported Adjustments Pro Forma Adjustments CashRevenues

Retail trading revenues 85,237$ - 85,237$ - 85,237$ 97,017$ - 97,017$ - 97,017$Institutional trading revenues 25,868 - 25,868 - 25,868 7,720 - 7,720 - 7,720

Trading revenues 111,105 - 111,105 - 111,105 104,737 - 104,737 - 104,737

Interest Income 990 - 990 - 990 963 - 963 - 963 Brokerage interest expense (66) - (66) - (66) (93) - (93) - (93)

Net interest income 924 - 924 - 924 870 - 870 - 870

Other Income 2,919 - 2,919 - 2,919 3,368 - 3,368 - 3,368 -

Total net revenues 114,948 - 114,948 - 114,948 108,975 - 108,975 - 108,975

Operating Expenses

Referring broker fees 18,708 - 18,708 - 18,708 25,720 - 25,720 - 25,720 Compensation and benefits 24,156 (2,378) (1) 21,778 (1,138) (5) 20,640 22,955 (2,120) (9) 20,835 (92) (11) 20,743 Advertising and marketing 7,509 - 7,509 - 7,509 9,870 - 9,870 - 9,870 Communication and technology 9,600 - 9,600 - 9,600 8,190 - 8,190 - 8,190 Trading cos ts , p rime brokerage and c lear ing fees 6 ,981 6,981 6,981 2,095 - 2,095 2,095 General and administrative 13,681 (501) (2) 13,180 - 13,180 11,102 (262) (10) 10,840 - 10,840 Depreciation and amortization 11,717 - 11,717 (11,717) (6) - 5,367 - 5,367 (5,367) (6) -

- Total operating expenses 92,352 (2,879) 89,473 (12,855) 76,618 85,299 (2,382) 82,917 (5,459) 77,458

- Operating income 22,596 2,879 25,475 12,855 38,330 23,676 2,382 26,058 5,459 31,517

Other expenseInterest on borrowings 1,158 - 1,158 - 1,158 - - - - -

Income before income taxes 21,438 2,879 24,317 12,855 37,172 23,676 2,382 26,058 5,459 31,517 Income tax provision 3,598 3,799 (3) 7,397 (230) (7) 7,167 8,136 796 (3) 8,932 (4,830) (7) 4,102

Net income 17,840 (920) 16,920 13,085 30,005 15,540 1,586 17,126 10,289 27,415

Net income attributable to non-controlling interest 13,327 (8,946) (4) 4,381 2,682 (8) 7,063 12,142 (12,142) (4) - (12,142) (8) - Net income attributable to FXCM Inc. 4,513$ 8,026$ 12,539$ 10,403$ 22,942$ 3,398$ 13,728$ 17,126$ 22,431$ 27,415$

Pro Forma fully exchanged, fully diluted weighted average shares outstanding 75,103 (12) 75,103 (12) 74,449 (12) 74,449 (12)

0.17$ 0.31$ 0.23$ 0.37$

Three Months Ended September 30,

Adjusted Pro Forma net i ncome per fully exchanged, fully diluted weighted averageshares outstanding

2012 2011


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* See footnotes following

Adjusted AdjustedAs Adjusted Pro Forma As Adjusted Pro Forma

Reported Adjustments Pro Forma Adjustments Cash Reported Adjustments Pro Forma Adjustments CashRevenues

Retail trading revenues 255,833$ - 255,833$ - 255,833$ 268,234$ - 268,234$ - 268,234$Institutional trading revenues 42,908 - 42,908 - 42,908 21,820 - 21,820 - 21,820

Trading reveuues 298,741 - 298,741 - 298,741 290,054 - 290,054 - 290,054

Interest Income 2,910 - 2,910 - 2,910 2,837 - 2,837 - 2,837 Brokerage interest expense (235) - (235) - (235) (226) - (226) - (226)

Net interest income 2,675 - 2,675 - 2,675 2,611 - 2,611 - 2,611

Other Income 7,805 - 7,805 - 7,805 14,228 - 14,228 - 14,228

Total net revenues 309,221 - 309,221 - 309,221 306,893 - 306,893 - 306,893

Operating Expenses

Referring broker fees 58,865 - 58,865 - 58,865 72,253 - 72,253 - 72,253 Compensation and benefits 81,175 (18,458) (1) 62,717 (1,845) (5) 60,872 68,662 (6,520) (9) 62,142 (92) (11 62,050 Advertising and marketing 23,266 - 23,266 - 23,266 24,375 - 24,375 - 24,375 Communication and technology 26,591 - 26,591 - 26,591 23,559 - 23,559 - 23,559 Trading costs , pr ime brokerage and c lear ing fees 10,187 - 10,187 10,187 6,484 - 6,484 6,484 General and administrative 48,891 (4,426) (2) 44,465 - 44,465 48,872 (16,262) (10) 32,610 - 32,610 Deprecia tion and amortization 24,761 24,761 (24,761) (6) - 14,201 - 14,201 (14,201) (6) -

Total operating expenses 273,736 (22,884) 250,852 (26,606) 224,246 258,406 (22,782) 235,624 (14,293) 221,331

Operating income 35,485 22,884 58,369 26,606 84,975 48,487 22,782 71,269 14,293 85,562

Other expenseInterest on borrowings 1,698 - 1,698 - 1,698 - - - - -

Income before income taxes 33,787 22,884 56,671 26,606 83,277 48,487 22,782 71,269 14,293 85,562 Income tax provision 4,856 13,633 (3) 18,489 (8,953) (7) 9,536 10,756 14,064 (3) 24,820 (11,821) (7) 12,999

Net income 28,931 9,251 38,182 35,559 73,741 37,731 8,718 46,449 26,114 72,563

22,971 (17,717) (4) 5,254 2,990 (8) 8,244 28,222 (28,222) (4) - (28,222) (8) - Net income attributable to FXCM Inc. 5,960$ 26,968$ 32,928$ 32,569$ 65,497$ 9,509$ 36,940$ 46,449$ 54,336$ 72,563$

Pro Forma fully exchanged, fully diluted weighted average share s outstandi ng 73,548 (12) 73,548 (12) 74,978 (12) 74,978 (12)

0.45$ 0.89$ 0.62$ 0.97$

NIne Months Ended September 3 0

Net income attributable to non-controlling interest

Adjusted Pro Forma net income per fully exchanged, fully diluted weighted averageshares outstanding

20112012


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(5)Represents the elim ination of equity-based compens ation granted subsequent to the IPO and of compensation costs as sociated with the recognition of deferred compensation in connection with theLucid Market Trading ("Lucid ") which was acqui red by the Com pany on June 18, 2012 (the "Acquisi tion") . Pursua nt to the terms o f the Acquis ition, the Compan y iss ued sha res of FXCM Inc. Class Acommon stock to the Lucid sellers subject to certain liquidity restrictions (the " Lucid Liquidity Restriction"). In accordance with Accounting Standards Codification, Topic 718, Compensation Stock

Compensation (ASC 718), the fair value of the Lucid Liquidity Restriction is a ccounted for as deferred compensation and recognized as expense over the three year period from closing of the Acquisition.

(6) Represents the elim ination of the depreciation of fixed ass ets and the am ortization of intangible assets.

(8)Represents an adjustment to reflect the Lucid's non-controlling interest amortization expense related to the identified intangible assets associated with the Acquisition.

(11) Represents the elimination of equity-based compensation granted subs equent to the IPO.

(7)Represents an adjustment to reflect the assum ed effective corporate tax rate of approximately 19.3% and 13.0.% for the three m onths ended September 30, 2012 and 2011, respectively, which includesU.S. federal cash taxes and assum es the highes t statutory rates for cash taxes apportioned to each s tate, local and/or foreign jurisdiction. The adjustment as sumes full exchange of existing unitholdersFXCM Holdings, LLC units for shares of Class A comm on stock of the Company.

(1) Represents the elim ination of equity-based comp ensation ass ociated with the IPO, severance and equity based compensation in connection with the renegotiation of certain employment contracts inthe Company's institutional and retail businesses .

(2) Represents the elim ination of acquisition-related costs and an adjustment to reflect a reserve established to settle certain trading system matters with the Financial Services Agency of Japan.

(3) Represents an adjustment to reflect the assum ed effective corporate tax rate of approximately 30.4% and 34.3% for the three months ended September 30, 2012 and 2011, respe ctively, which includesa provision for U.S. federal income taxes and ass umes the highest statutory rates apportioned to each state, local and/or foreign jurisdiction. The adjustment assum es full exchange of existing unitholdersFXCM Holdings, LLC units for shares of Class A comm on stock of the Company.

(4) Represents the elimination of the non-controlling interest associated with the ownership by existing unitholders of FXCM Holdings, LLC (excluding FXCM, Inc.), as if the unitholders had fully exchangedtheir FXCM Holdings, LLC units for shares of Clas s A common stock of the Company.

(12) Fully diluted shares as suming all unitholders had fully exchanged their FXCM Holdings, LLC units for shares of Class A common stock of the Company.

(9) Represents the elim ination of equity-based comp ensation ass ociated with the IPO.

(10) Represents an adjustment to reflect a reserve established relating to a settlement with the National Futures Association (the "NFA") and ongoing discussions with the Comm odity Futures TradingCommis sion (the "CFTC") regarding trade execution activities. Pursuant to an agreement with a s ubsidiary of FXCM Holdings, ("Holdings") certain founding mem bers of Holdings agreed to reimburse thecost of these matters, up to $16.0 million. Consequently, there was no impact to FXCM Inc.'s net income for the three months ended September 30, 2011 as the entire expense was allocated to suchfunding members. In July 2011, $16.00 million of additional capital was provided by the respective founding members .


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(5)Represents the elim ination of equity-based com pensation granted subs equent to the IPO and of compensa tion costs ass ociated with the recognition of deferred compensation inconnection with the Lucid Market Trading ("Lucid") which was acquired by the Company on June 18, 2012 (the "Acquisition") . Pursuant to the terms of the Acquisition, the Company iss uedshares of FXCM Inc. Class A common s tock to the Lucid sellers s ubject to certain liquidity restrictions (the " Lucid Liquidity Restriction"). In accordance with Accounting StandardsCodification, Topic 718, Comp ensation Stock Compens ation (ASC 718), the fair value of the Lucid Liquidity Restriction is accounted for as deferred compensation an d recognized asexpense over the three year period from closing of the Acquisition.

(6) Represents the elim ination of the depreciation of fixed assets and the am ortization of intangible assets.

(12) Fully diluted shares a ssum ing all unitholders had fully exchanged their FXCM Holdings, LLC units for shares of Class A comm on stock of the Company.

(7)Represents a n adjustme nt to reflect the ass umed effective corporate tax rate of approximately 11.5% and 15.2% for the three m onths ended September 30, 2012 an d 2011, respectively,which includes U.S. federal cash taxes and a ssum es the highes t statutory rates for cash taxes apportioned to each s tate, local and/or foreign jurisdiction. The adjustmen t assum es fullexchange of existing unitholders FXCM Holdings, LLC units for shares of Class A common s tock of the Company.

(8)Represents a n adjustme nt to reflect the Lucid's non-controlling interest am ortization expense related to the identified intangible assets associated with the Acquisition.

(9) Re resents the elimination of equit -based com ensation associated with the IPO.

(10) Represents an adjustm ent to reflect a reserve established relating to a s ettlement with the National Futures Association (the "NFA") and ongoing discuss ions with the C omm odity FuturesTrading Commis sion (the "CFTC") regarding trade execution activities. Pursuant to an agreem ent with a subs idiary of FXCM Holdings, ("Holdings") certain founding m embers of Holdingsagreed to reimburse the cost of these matters, up to $16.0 million. Consequently, there was n o impact to FXCM Inc.'s net income for the three months ended September 3 0, 2011 as the entireexpense was allocated to such funding members. In July 2011, $16.00 million of additional capital was provided by the respective founding members .

(11) Represents the elim ination of equity-based compe nsation granted subs equent to the IPO.

(1) Represents the elimination of equity-based compens ation ass ociated with the IPO, severance and equity based compens ation in connection with the renegotiation of certain employmentcontracts in the Company's institutional and retail business es.

(2)

Represents the elim ination of acquisition-related costs and an adjustme nt to reflect a reserve established to settle certain trading system m atters with the Financial Services Agency ofJapan.

(3) Represents an adjustment to reflect the assum ed effective corporate tax rate of approximately 32.6% and 34.8% for the three m onths ended September 30, 2012 an d 2011, respectively,which includes a provision for U.S. federal income taxes and ass umes the highest statutory rates apportioned to each state, local and/or foreign jurisdiction. The adjustment assu mes fullexchange of existing unitholders FXCM Holdings, LLC units for shares of Class A common s tock of the Company.

(4) Represents the elimination of the non-controlling interest ass ociated with the owners hip by existing unitholders of FXCM Holdings, LLC (excluding FXCM, Inc.), as if the unitholders had fullyexchanged their FXCM Holdings, LLC units for shares of Clas s A common s tock of the Compan y.

FXCM Q3 Slide Deck

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Transcript of FXCM Q3 Slide Deck