FXCM Confirms Raising $300 Mln to "Stay One of the Largest Global Brokers"
On the heels of a $300 million Leucadia National bailout, FXCM has confirmed that it has managed to ensure full
On the heels of a $300 million Leucadia National bailout, FXCM has confirmed that it has indeed managed to ensure the full financial stability of all its client accounts, following a tumultuous past 48 hours that saw clients facing negative equity balances owed to the broker.
Yesterday, FXCM suffered an unprecedentedly large capital hit due to client negative balances reaching approximately $225 million. The losses put the broker in breach of some regulatory capital requirements, which even drew a review from the US Commodity and Futures Trading Commission (CFTC).
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With news of the Leucadia bailout however, FXCM is once again in the driver’s seat, having been recapitalized. FXCM has issued a statement to its clients ensuring that normal trading and operations will continue for all its customers with the remainder of its net proceeds being allocated to replace capital in FXCM regulated entities.
There is also news from Alpari: the broker now says on its website that “For the avoidance of any doubt and notwithstanding previous announcements by the company, Alpari (UK) Limited has not entered a formal insolvency process”.
I just wrote about it on my site.
I wonder if they manage to find a buyer. These are definitely interesting times for the forex industry. Hopefully it will emerge stronger as a whole.
Are they really so naive to believe they will stay big? Their risk management is worse than that of a 8-year old kid who plays pennystock with his pocket money. Pathetic. Truly pathetic.
@Douglas Agreed! I don’t think traders believe in the stability of this firm anymore. They will be processing nothing but withdrawals for the next three weeks.