The investment banking and financial services company submitted its financial report to the Securities and Exchange Commission (SEC) for the three- and six-month periods that concluded on May 31.

The report, which was turned in on July 7, showed a dispute between the group and Global Brokerage Inc. regarding control of FXCM.

The retail foreign currency brokerage firm FXCM, also known as Forex Capital Markets, is situated in New York.

Global Brokerage Holdings, a subsidiary company owned by the broker, which holds 50% of the voting shares of FXCM, was targeted in an involuntary bankruptcy case issued in March by creditors of Global Brokerage.

According to Finance Magnates, Jefferies intends to ask the bankruptcy court to permit it to reclaim the money invested in FXCM.

As of May 31, FXCM owed Jefferies $35m, which was given to the broker as a secured lending facility.

In addition, Jefferies reported that it held 50% of the voting rights in FXCM and that its representation on the board of directors gave it a substantial say over the company’s decisions.

The corporation also made additional contributions of $5m and $10m over the course of the three-month and six-month periods that concluded on May 31, 2023.

Jefferies explained in the report: “We have an equity interest in FXCM, which was worth $46.6m as of May 31 2023, and $59.7m as of November 30, 2022. It consists of a 50% voting interest in FXCM and a right to a majority of all the distributions of the equity of FXCM.”

Furthermore, the information indicates that Jefferies granted a loan to FXCM in which all of Global Brokerage’s shares is pledged as a collateral.

Given this, Jefferies considers that it would possess all of FXCM if it were able to recover all of the assets provided as a security.