Currency Losses on Swiss Move Threatens Broker FXCM (FXCM)

Yesterday's surprise move by the Swiss National Bank to uncap its currency to the Euro has claimed its first possible victim. Leading currency trading platform FXCM (NASDAQ: FXCM) said that it faces serious potential losses as a result of the move.
In a statement overnight, FXCM said, "clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million."
The firm said as a result of these debit balances, it may be in breach of some regulatory capital requirements.
FXCM is actively discussing alternatives to return capital to levels prior to today's events and discussing the matter with regulators.

Please share this article