Alpari: UK unit scrambling for sale (could be to FXCM);

Alpari’s story continues to fascinate: Alpari UK initially announced they have  entered insolvency, then changed its position stating it has NOT  entered a formal insolvency and is checking out the options, including a sale.

And now there is more news from both the UK unit and the Japanese one:

Forex Magnates now reports that Alpari UK is now in hectic  acquisition negotiations that could result in a sale in the upcoming days. FM also reveals:

It has also been revealed to us that the amount of negative client balances Alpari UK is on the hook for is about $45 million, while the firm’s client equity is estimated to be around $100 million. The breakdown of the negative exposure is $20-$25 million in liabilities and about $15-$25 million in regulatory capital shortfall.

Update: Sunday, 16:00 GMT: Forex Magnates now reports the FXCM is emerging as the potential buyer of Alpari UK.

Update Monday, 9:18 GMT: LeapRate reports that Alpari UK denies an acquisition by FXCM.

Update Monday 10:10 GMT:  Will Australia’s Pepperstone acquire the troubled firm? – New report emerging

Update, Monday 16:30 GMT:  Alpari UK enters administration after no buyers found

But while the drama in the UK continues, Alpari Japan has advised its clients to withdraw funds as the parent company is  insolvent.  Leap Rate reports:

The Japanese subsidiary of the British division of Alpari advises that, as client funds are segregated from operating and trading capital, they will be returned in due course to clients, however operations have ceased, meanwhile Alpari UK has stated that it continues to explore its options and is in search of a potential purchaser.

The story of Alpari UK and FXCM (which received a lifeline from Leucadia and is returning to normal business after some turbulent times) are the biggest. Some other brokers have suffered losses, others have  made profits.

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