FXCM Second Quarter 2013 Earnings

8/22/2019 FXCM Second Quarter 2013 Earnings

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UnsavedDocument/9/18/2010/13:49

Second Quarter 2013Financial and Operating ResultsJuly 2013 Operating Metrics


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2

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of1933 and Section 21E of the Securities Exchange Act of 1934, which reflect FXCMs current views with respect to,among other things, its operations and financial performance. You can identify these forward-looking statements bythe use of words such as outlook, believes,expects, potential, continues, may, will, should, seeks,approximately, predicts, intends, plans, estimates, anticipates or the negative version of these words orother comparable words. Such forward-looking statements are subject to various risks and uncertainties.

Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materiallyfrom those indicated in these statements. FXCM believes these factors include but are not limited to evolving legaland regulatory requirements of the FX industry, the limited operating history of the FX industry, risks related to theprotection of its proprietary technology, risks related to its dependence on FX market makers, market conditionsand those other risks described under Risk Factors as such factors may be updated from time to time in FXCMInc.s most recent annual report on Form 10-K, FXCM Inc.s quarterly reports on Form 10-Q and other SEC filings,which are accessible on the SECs website at sec.gov.

FXCM undertakes no obligation to publicly update or review any forward-looking statement, whether as a result ofnew information, future developments or otherwise.

Non-GAAP Financial Measures: This presentation presents certain non-GAAP financial measures. Thesemeasures should not be considered in isolation from, or as a substitute for, measures prepared in accordance withgenerally accepted accounting principles. See the appendix to this presentation for reconciliations of these non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP.

Safe Harbor

2


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Record results in most metrics and financial measures in an improved but notextraordinary trading environment A reflection of the customer growth by FXCM over the past five years Q2/13 volatility(1) of 9.6 still below the average of 11.8 since 1/1/2009

Highlights the earnings potential and high incremental margins of FXCM

Significant financial flexibility - $529 million in liquidity $373.7 million cash balance at 6/30/13 vs. $70.7 million of capital requirements $155.0 million available under underdrawn credit facility

M&A pipeline robust Momentum continuing with solid volumes in July

3

Highlights Second Quarter 2013

(1) J PMorgan Global FX Volatility Index


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Highlights Second Quarter 2013

4

Record quarterly revenues of $140.1 million, +53% from Q2/12 on record quarterly retailvolume of $1.2 trillion, +33% from Q2/12 Revenues and retail volume up 14% and 11% sequentially from a strong Q1/13

GAAP EPS of $0.32 per fully diluted share, vs. ($0.06) in Q2/12 Up 39% sequentially from Q1/13

Adjusted Pro Forma EBITDA(1) of $54.5 million, +159% from Q2/12 & second highest inFXCM history (highest was Q4/08) 46.3% net EBITDA margin(2)

Adjusted Pro Forma EPS of $0.31 per fully diluted share, +182% from Q2/12 Retail revenue per million of $90/million, unchanged from Q2/12 Another strong quarter of cash generation and return of capital to shareholders

$62M in after-tax cash flow from operations Repurchased 853,400 shares for $12.0M in Q2/13 - average cost of $14.08 Paid $6.4 million in dividends and distributions to shareholders in Q2/13

(1) Adjusted Pro Forma EBITDA and Adjusted Pro Forma EPS are non-GAAP financial measures that excludes certain extraordinary items; reconciliations of these measures to the most directly comparableGAAP measures are available in the appendix to this presentation.

(2) EBITDA divided by revenues less referring broker fees.

* Definitions of certain operating metrics are available in the appendix to this presentation. 4


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Market Environment

5

Improved but not extraordinary trading environment Average CVIX in Q2/13 was 9.6

Up 10% from Q1/13 and 4% above the average for 2012 Down 7% from Q2/12 and 19% below the average since 1/1/2009

(1) J PMorgan Global FX Volatility Index

CVIX(1)

7

9

11

13

15

17

19

21

1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013


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Retail FX

6* Definitions of certain operating metrics are available in the appendix to this presentation.

378,837 367,051345,790 366,015

438,063

516,960

-

100,000

200,000

300,000

400,000

500,000

600,000

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

DARTs

490387 421 401

476 519

272

275 260 283

311360

95

101 92 86

138

148128

106 89 116

116

124

-

200

400

600

800

1,000

1,200

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Volume by Region ($ Billion)

Asia EMEA US ROW

$94$90

$99$95

$88$90

$-

$20

$40

$60

$80

$100

$120

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Retail $ / Million

15.2

13.4 13.3

13.8

16.5

17.7

9

10

11

12

13

14

15

16

17

18

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Retail ADV

USBillions


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Institutional FX

7

FXCM institutional volumes showingcontinued progress

Institutional volume +50% sequentially fromQ1/13 to $558B

$398 $402

$156

$223

$373

$558

$-

$100

$200

$300

$400

$500

$600

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Institutional Volume (Billions)

$21.7$24.0

$22.2

$16.0

$23.0

$25.5

$13.5$16.6 $15.9

$10.9

$16.2$18.0

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Lucid Revenues & EBITDA (Millions) (1)

Revenues EBITDA

Strong quarter from Lucid

Averaged $392K/day in revenues, +7%sequentially from Q1/13

(1) EBITDA excludes the $781K /quarter in amortization of the value of liquidity restrictions put on the FXCM Class A common shares issuable to the Lucid sellers recorded under US GAAP as compensationexpense; in addition, consistent with the proforma presentation of results by FXCM, EBITDA excludes Lucid minority interest net income reflected as compensation under US GAAP. See attached

reconciliation of non-GAAP financial measures and a reconciliation of Adjusted Pro Forma income to U.S. GAAP results


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Convertible Financing

Issued $172.5 million 5-year convertible at 2.25% with 32.5% conversion premium onMay 28

Launched offering seeking $125.0 million at 2.25-2.75% with a conversion premium of27.5-32.5%

Received over $800 million in demand / upsized offering and greenshoe exercised

Purchased a bond hedge to increase effective conversion price up 50% from closingprice or $21.24/share

8


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M&A Update

While offer for Gain Capital terminated, M&A pipeline remains robust

FXCM has proven track record as disciplined acquirer

Four successful acquisitions since 2010 at attractive prices and accretion rates ODL (UK) FXCM Japan (Japan) Foreland (Japan) Lucid (UK)

9


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Adjusted Pro Forma Income3 and 6 Months Ended June 30, 2013 and 2012(unaudited)

10

* On a Adjusted Pro Forma basis; see attached reconciliation 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.

10

(In thousands, except per share data) 2013 2012 % Change 2013 2012 % Change

Revenues

Retail trading revenues 104,068$ 77,870$ 34% 195,322$ 170,596$ 14%

Institutional trading revenues 31,792 11,220 183% 59,348 17,040 248%

Trading revenue 135,860 89,090 52% 254,670 187,636 36%

Interest income 670 1,059 -37% 1,349 1,920 -30%

Brokerage interest expense (69) (78) -12% (124) (169) -27%

Net interest income 601 981 -39% 1,225 1,751 -30%

Other operating income 3,672 1,612 128% 7,102 4,886 45%

Total net revenues 140,133 91,683 53% 262,997 194,273 35%

22,422 19,968 12% 43,772 40,157 9%

Net revenues 117,711 71,715 64% 219,225 154,116 42%

Expenses

Compensation and benefits 24,529 19,830 24% 45,999 40,939 12%

Advertising and marketing 6,157 7,487 -18% 13,508 15,757 -14%

Communication and technology 9,765 8,611 13% 18,120 16,991 7%

Trading costs, prime brokerage and clearing fees 8,961 1,893 373% 16,899 3,206 427%

General and administrative 13,423 12,888 4% 25,894 31,285 -17%

Loss on equity method investments, net 397 - 0% 545 -

63,232 50,709 25% 120,965 108,178 12%

EBITDA 54,479 21,006 159% 98,260 45,938 114%

Net EBITDA M argi n 46.3% 29.3% 44.8% 29.8%

Depreciation and amortization 12,481 6,863 82% 24,455 13,044 87%

Interest on borrowings 1,290 271 376% 2,107 540

Income before income taxes 40,708 13,872 193% 71,698 32,354 122%

Income tax provision 9,365 5,124 83% 18,960 11,091 71%

Net income 31,343 8,748 258% 52,738 21,263 148%

- - - -

8,043 873 821% 11,921 873 1266%

Net income attr ibutable to FXCM Inc. 23,300$ 7,875$ 196% 40,817$ 20,390$ 100%

75,715 72,848 4% 75,750 72,761 4%

$0.31 $0.11 182% $0.54 $0.28 93%

Pro Forma fully exchanged, diluted weighted

average shares outstanding (in thousands)

Net income attributable to non-controlling interest in

FXCM Holdings, LLC

Adjus ted Pr o Forma ne t inc ome p er f ully

exchanged, diluted weighted average shares


Lucid Markets Trading Limited

Referring broker fees

Three Months Ended

June 30,

Six Months Ended

June 30,

Adjus ted Pr o Forma (Unaudi ted)


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Balance SheetAs of June 30, 2013 and December 31, 2012 (Condensed)

11* Under U.S. GAAP. Certain totals may not foot due to rounding. See accompanying notes to the consolidated financial statements that will be filed with our 10-Q on or before August 10, 2013

(Unaudited)

June 30, December 31,

(In Thousands) 2013 2012 $ Change

Ass etsCurrent assets

Cash and cash equivalents 373,745$ 272,332$ 101,413$

Cash and cash equivalents, held for customers 1,171,487 1,190,762 (19,275)

Other current assets 43,821 30,126 13,695

Total current assets 1,589,053 1,493,220 95,833

Office, communication and computer equipment, net 51,437 50,316 1,121

Goodwill and Intangible assets, net 362,604 383,446 (20,842)

Other assets 162,144 138,188 23,956

Total assets 2,165,238$ 2,065,170$ 100,068$

Liabilities and Equity

Current liabilities

Customer account liabilities 1,171,487$ 1,190,762$ (19,275)$

Credit agreement - 85,000 (85,000)

Note payable 15,300 22,867 (7,567)

Other current liabilities 120,253 92,004 28,249

Total current liabilities 1,307,040 1,390,633 (83,593)

Senior convertible notes 143,789 - 143,789

Other liabilities 107,507 99,622 7,885

Total liabilities 1,558,336 1,490,255 68,081

Commitments and Contingencies

Stockholders ' Equity

Total stockholders' equity FXCM Inc. 216,282 181,559 34,723

Non-controlling interest 390,620 393,356 (2,736)

Total stockholders' equity 606,902 574,915 31,987

Total liabilities and stockholders' equity 2,165,238$ 2,065,170$ 100,068$


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Strong Cash Generation

12

Net Cash Flow from Operating Activities

$79

$90

$84

$102

$33

$62

$-

$20

$40

$60

$80

$100

$120

2009 2010 2011 2012 Q1 2013 Q2 2013

($ in Millions, Unaudited)

($ Millions)Depreciation & Amort. 6.5 9.3 20.1 36.8 12.0 12.5Equity-based Comp - 0.7 9.5 23.0 3.2 3.3

After-tax cash flow from operations of

$95M for first 6 months 2013 already93% of 2012s $102M

FXCM Inc. Six Months Ended June 30, 2013($ Millions)

After-Tax Cash Flow from Operations $ 95.1Less: Capital Expenditures 11.0

$ 84.1

Other Sources (Uses):Issuance of Convertible Bond $166.5Option Exercises 2.7

Investment in FastMatch ( 3.0)Dividends and member distributions (12.4)Common Stock Repurchases (12.0)

Convertible Bond Hedge (10.5)Repayment of Credit Facility (85.0)Repayment of Lucid Note (22.9)Other ( 6.1)

Total Other Uses (Sources) ($ 17.3)

Net Change in Cash $101.4


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July 2013 Operating Metrics

13

$388B in retail monthly trading volumethird highest in FXCM history

Retail DARTs of 456,04412% belowQ2/13 average

Active accounts up 1.3% from June 2013

$185B in monthly volume continuingstrength of Q2/13

$8.0B in institutional ADV continuingstrength of Q2/13

$290 $287 $295

$347

$384 $388

$200

$250

$300

$350

$400

Q2 12 Q3 12 Q4 12 Q1 13 Q2/13 Jul-13

Retail Monthly Trading Volume

USBillions

367,051345,790

366,015

438,063

516,960

456,044

200,000

300,000

400,000

500,000

600,000

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Jul-13

Retail DARTs

174,218171,274 170,930

173,265

182,225

184,534

160,000

170,000

180,000

190,000

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Jul-13

Retail Active Accounts

$13.4$13.3

$13.8

$16.5

$17.7$16.9

$10.0

$12.0

$14.0

$16.0

$18.0

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Jul-13

Retail ADV

USBillions

$134

$52

$74

$124

$186$185

$-

$50

$100

$150

$200

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Jul-13

Institutional Monthly Trading Volume

$6.2

$2.4

$3.5

$5.9

$8.6

$8.0

$2.0

$4.0

$6.0

$8.0

$10.0

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Jul-13

Institutional ADV

USBillions

US

Billions

13

$16.9B in retail ADVfourth highest inFXCM history


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Summary

Second quarter 2013 offers glimpse of earnings power of FXCM in a morefavorable trading environment

Solid performance across the board retail, institutional and Lucid

Post-convertible financing and now with over $500 million in liquidity, FXCMhas the firepower to pursue meaningful acquisitions

Cash flow generation strong and returning capital to shareholders

14


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Appendix

1515


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Operating Metrics

16

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

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

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

(4) Daily average trades per active account represents the total daily average trades per average active account in the period.

Three Months EndedJune 30,2013 March 31,2013 December31, 2012 September30, 2012 June 30,2012 March 31,2012 December31, 2011 September30, 2011 June 30,2011

(Dollars in thousands, except as noted)Net Account Additions (1) 4,631 5,412 (12,177) (2,717) 4,401 2,104 23,287 181 29,425

Total Tradable Accounts (2) 190,998 195,629 190,217 202,394 205,111 196,710 194,606 171,319 171,138

Total Active Accounts (3) 182,225 173,265 170,930 171,274 174,218 171,296 163,094 156,053 154,786

Total Customer Trading Volume (dollars inbillions)

1,152 1,041 886 862 869 985 972 1,042 938

Trading Days in Period 65 63 64 65 65 65 65 66 65

Daily Average Trades 516,960 438,065 366,015 345,790 367,051 379,289 423,413 438,599 350,349

Daily Average Trades per Active Account (4) 2.8 2.5 2.1 2.0 2.1 2.2 2.7 2.8 2.4

Retail Trading Revenue per Million Traded $90 $88 $ 95 $ 99 $ 90 $ 94 $ 98 $93 $ 100

Total Customer Equity (dollars in millions) $1,171.5 $1,190.4 $ 1,190.8 $ 1,278.4 $ 1,254.7 $ 1,135.9 $ 1,047.0 $828.2 $839.0

Customer Trading Volume by Region(dollars in billions)

-Asia 519 476 401 421 387 490 $ 459 $ 461 $ 451

-EMEA 360 311 283 260 275 272 271 316 269

-United States 148 138 86 92 101 95 112 124 89

-Rest of World 124 116 116 89 106 128 131 141 128

Total $1,152 $1,041 $ 886 $ 862 $ 869 $ 985 $ 972 $ 1,042 $ 938


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Reconciliation of Adjusted Pro Forma Results toU.S. GAAP Quarter Ended June 30, 2013 (000s except pershare amounts, unaudited)

17

* See footnotes following

17

As Adjusted As Adjusted

Reported Adjustments Pro Forma Reported Adjustments Pro Forma

Revenues

Retail trading revenue 104,068$ - 104,068$ 77,870$ - 77,870$

Institutional trading revenue 31,792 - 31,792 11,220 - 11,220

Trading revenue 135,860 - 135,860 89,090 - 89,090

Interest income 670 - 670 1,059 - 1,059

Brokerage interest expense (69) - (69) (78) - (78)

Net interest income 601 - 601 981 - 981

Other operating income

Other 3,672 - 3,672 1,612 - 1,612

Total net revenues 140,133 - 140,133 91,683 - 91,683

Operating Expenses

Compensation and benefits 26,587 (2,058)(1)

24,529 33,802 (13,972)(5)

19,830Allocation of net income to Lucid members for

services provided 15,004 (15,004)(2)

- - - -

Total compensation and benefits 41,591 (17,062) 24,529 33,802 (13,972) 19,830

Referring broker fees 22,422 - 22,422 19,968 - 19,968

Advertising and marketing 6,157 - 6,157 7,487 - 7,487

Communication and technology 9,765 - 9,765 8,611 - 8,611

Trading costs, prime brokerage and clearing fees 8,961 8,961 1,893 - 1,893

General and administrative 13,423 - 13,423 16,813 (3,925)(6)

12,888

Depreciation and amortization 12,481 - 12,481 6,863 - 6,863

Total operating expenses 114,800 (17,062) 97,738 95,437 (17,897) 77,540

Operating income (loss) 25,333 17,062 42,395 (3,754) 17,897 14,143

Loss on equity method investments, net 397 - 397 - - -

Interest on borrowings 1,290 - 1,290 271 - 271

Income before income taxes 23,646 17,062 40,708 (4,025) 17,897 13,872

Income tax provision (benefit) 6,390 2,975(3)

9,365 (1,109) 6,233(3)

5,124

Net income 17,256 14,087 31,343 (2,916) 11,664 8,748

Net income attributable to non-controlling interest

in FXCM Holdings, LLC 14,093 (14,093)(4)

- (2,348) 2,348(4)

-

(6,961) 15,004(2)

8,043 873 - 873

Net income attributable to FXCM Inc. 10,124$ 13,176$ 23,300$ (1,441)$ 9,316$ 7,875$

Pro Forma fully exchanged, fully diluted weighted average shares outstanding 75,715(7)

72,848(7)

0.31$ 0.11$

Three Months Ended June 30,

Adjusted Pro Forma net income per fully exchanged, fully diluted weighted average

shares outstanding

2013 2012

Net income attributable to non-controlling interest

in Lucid Markets Trading Limited


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Reconciliation of Adjusted Pro Forma Results to U.S.GAAP Quarter Ended June 30, 2013 (Footnotes)

1818

(7)Fully diluted shares assuming all unitholders had fully exchanged their Holdings units for shares of Class A common stock of the Company.

(1)Represents the elimination of equity-based compensation associated with the IPO offering.

(3)Represents an adjustment to reflect the assumed effective corporate tax rate of approximately 23.0% and 36.9% for the three months ended J une 30, 2013 and

2012, respectively, which includes a provision for U.S. federal income taxes and assumes the highest statutory rates apportioned to each state, local and/or foreign

jurisdiction. The adjustment assumes full exchange of existing unitholders FXCM Holdings, LLC ("Holdings") units for shares of Class A common stock of the

Company and reflects the tax effect of any pro forma adjustments.

(4) Represents the elimination of the non-controlling interest associated with the ownership by existing unitholders of Holdings (excluding FXCM, Inc.), as if the

unitholders had fully exchanged their Holdings units for shares of Class A common stock of the Company.

(2) Represents the reclassification of the 49.9% of Lucids earnings allocated among the non-controlling members of Lucid based on services provided for U.S.

GAAP purposes to Net income attributable to non-controlling interest in Lucid Markets Trading Limited.

(6) Represents the elimination of certain acquisition-related costs and the elimination of certain costs (including client reimbursements) associated with settling

certain historical trade execution issues with the Financial Services Agency of J apan.

(5)Represents the elimination of stock-based compensation associated with the IPO, severance and stock-based compensation in connection with the

renegotiation of certain employment contracts in the Company's ins titutional and retail businesses.


19/21

Reconciliation of Adjusted Pro Forma Results toU.S. GAAP Six Months Ended June 30, 2013 (000s exceptper share amounts, unaudited)

19

* See footnotes following

19

As Adjusted As Adjusted

R eported Adjus tments P ro Forma R eported Adjus tments P ro Forma

Revenues

Retail trading revenue 195,322$ - 195,322$ 170,596$ - 170,596$

Institutional trading revenue 59,348 - 59,348 17,040 - 17,040

Trading revenue 254,670 - 254,670 187,636 - 187,636

Interest income 1,349 - 1,349 1,920 - 1,920

Brokerage interest expense (124) - (124) (169) - (169)

Net interest income 1,225 - 1,225 1,751 - 1,751

Other operating income 7,102 - 7,102 4,886 - 4,886

Total net revenues 262,997 - 262,997 194,273 - 194,273

Operating Expenses

Compensation and benefits 50,120 (4,121)(1)

45,999 57,019 (16,080)(5)

40,939Allocation of net income to Lucid members for

services provided 15,004 (15,004) (2) - - - -

Total compensation and benefits 65,124 (19,125) 45,999 57,019 (16,080) 40,939

Referring broker fees 43,772 - 43,772 40,157 - 40,157

Advertising and marketing 13,508 - 13,508 15,757 - 15,757

Communication and technology 18,120 - 18,120 16,991 - 16,991

Trading costs, prime brokerage and clearing fees 16,899 - 16,899 3,206 - 3,206

General and administrative 25,894 - 25,894 35,210 (3,925) (7) 31,285

Depreciation and amortization 24,455 24,455 13,044 - 13,044

Total operating expenses 207,772 (19,125) 188,647 181,384 (20,005) 161,379

Operating income (loss) 55,225 19,125 74,350 12,889 20,005 32,894

Other expense

Loss on equity method investments, net 545 - 545 - - -

Interest on borrowings 2,107 - 2,107 540 - 540

Income before income taxes 52,573 19,125 71,698 12,349 20,005 32,354

Income tax provision (benefit) 14,349 4,611 (3) 18,960 1,258 9,833 (3) 11,091

Net income 38,224 14,514 52,738 11,091 10,172 21,263

24,323 (24,323) (4) - 8,771 (8,771) (4) -

(3,083) 15,004 (2) 11,921 873 - 873

Net income attributable to FXCM Inc. 16,984$ 23,833$ 40,817$ 1,447$ 18,943$ 20,390$

Pro Forma fully exchanged, fully diluted weighted average shares outstanding 75,750 (6) 72,761 (6)

0.54$ 0.28$

Six months ended June 30,


Lucid Markets Trading Limited


FXCM Holdings, LLC

Adjusted Pro Forma net income per fully exchanged, fully diluted weighted average

shares outstanding

20122013


20/21

Reconciliation of Adjusted Pro Forma Results to U.S.GAAP Six Months Ended June 30, 2013 (Footnotes)

2020

(5) Represents the elimination of stock-based compensation associated with the IPO, severance and stock-based compensation in connection with the

renegotiation of certain employment contracts in the Company's institutional and retail businesses.

(6)Fully diluted shares assuming all unitholders had fully exchanged their Holdings units for shares of Class A common stock of the Company.

(1)Represents the elimination of stock-based compensation associated with the IPO.

(3)Represents an adjustment to reflect the assumed effective corporate tax rate of approximately 26.4% and 34.3% for the six months ended J une 30, 2013

and 2012, respectively, which includes a provision for U.S. federal income taxes and assumes the highest statutory rates apportioned to each state, local

and/or foreign jurisdiction. The adjustment assumes full exchange of existing unitholders Holdings units for shares of Class A common stock of the

Company.

(4)Represents the elimination of the non-controlling interest associated with the ownership by existing unitholders of Holdings (excluding FXCM, Inc.), as if

the unitholders had fully exchanged their Holdings units for shares of Class A common stock of the Company.

(7) Represents the elimination of certain acquisition-related costs and the elimination of certain costs (including client reimbursements) associated with

settling certain historical trade execution issues with the Financial Services Agency of J apan.

(2)Represents the reclassification of the 49.9% of Lucids earnings allocated among the non-controlling members of Lucid based on services provided for

U.S. GAAP purposes to Net income attributable to non-controlling interest in Lucid Markets Trading Limited.


21/21

Shares Outstanding / Market Capitalization

2121

As at 6/30/13:

FXCM Inc. had 38,012,793 Class A shares outstanding

FXCM Inc. owns 46.9% of FXCM Holdings LLC

With non-FXCM Inc. FXCM Holdings Units exchangeable 1-1 into FXCM Class A shares, there are effectively80,960,491 shares outstanding

At $16.41 closing price on 6/28/13 would imply a market capitalization of $1.33 billion

FXCM Second Quarter 2013 Earnings

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