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28 Jan 2015
FXCM to forgive most clients who incurred in negative balances after SNB move
FXStreet (Córdoba) - Currency broker FXCM will "forgive" about 90% of its clients for losses incurred on the back of Swiss National Bank surprise decision to remove the EUR/CHF floor on Jan 15.
However, the retail broker FXCM, which faced capital issues after the SNB move, said it will request institutional, high net worth, and experienced traders who generally maintain higher account, the payment of negative balances. That group accounts for about 10% of clients who incurred negative balances but represents about 60% of the total balances owed.
FXCM said it will notify the applicable clients and adjust their account statements in the next 24 to 48 hours.
“The SNB announcement, extreme price movements and the resulting lack of liquidity were exceptional and unprecedented events causing many market participants to incur trading losses", said FXCM in a statement. "FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this".
FXCM accepted a $300 million bailout from Leucadia National Corp., the owner of investment bank Jefferies Group LLC, to avoid violating capital requirements.
However, the retail broker FXCM, which faced capital issues after the SNB move, said it will request institutional, high net worth, and experienced traders who generally maintain higher account, the payment of negative balances. That group accounts for about 10% of clients who incurred negative balances but represents about 60% of the total balances owed.
FXCM said it will notify the applicable clients and adjust their account statements in the next 24 to 48 hours.
“The SNB announcement, extreme price movements and the resulting lack of liquidity were exceptional and unprecedented events causing many market participants to incur trading losses", said FXCM in a statement. "FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this".
FXCM accepted a $300 million bailout from Leucadia National Corp., the owner of investment bank Jefferies Group LLC, to avoid violating capital requirements.