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).
ForexTB Set to Launch New Innovative Trading PlatformGo to article >>
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.