FXCM lost 88% of its share price due to the swiss franc unpegging.

Discussion in 'Markets & Economies' started by adrenalin, Jan 23, 2015.

  1. adrenalin

    adrenalin New Member

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    Trading in currency brokerage firm FXCM, which caters to retail traders,
    was delayed at the open after shares plummeted 88% in pre-market trading to $1.49 apiece.
    After dropping 15% to $12.63 Thursday, the broker said the "unprecedented volatility" in
    euro/franc pairs resulted in massive losses for clients, who subsequently owed FXCM
    about $225 million, leading to a negative equity balance that could put the company in
    breach of regulatory capital requirements.

    "We are actively discussing alternatives to return our capital to levels prior to today's
    events and discussing the matter with regulators," FXCM said in its brief statement Thursday.
    Citi analyst William Katz warned clients "the severity of the impact is likely to question the sustainability of the retail platform."


    http://www.forbes.com/sites/stevesc...aims-victims-currency-broker-fxcm-bludgeoned/
     

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