It’s going to be quite the day for FXCM Inc.FXCM -15.06%,
the retail forex brokerage that is so far among the most prominent
names to be waylaid by the Swiss National Bank’s surprise move on
Thursday to end its currency peg, and shares are down more than 85% in
premarket trading.
Shares of FXCM, the biggest retail foreign-exchange broker in the U.S. and Asia, were quoted in premarket trading at $1.77, off 86% on trading volume of 2.7 million shares. The stock closed at $12.63 on Thursday, down 15% as the market absorbed the Swiss news–but then, well after the market closed Thursday, FXCM issued a terse press release with a bombshell announcement: because of the day’s manic trading, its clients had taken a bath. Those clients–many of them mom-and-pop investors with small accounts that lever up to try to juice returns–now owe the firm $225 million. In the absence of those funds, the company is now short of its regulatory capital requirements. Read it for yourself:
Read more Click Here / www.trade4x.net
Shares of FXCM, the biggest retail foreign-exchange broker in the U.S. and Asia, were quoted in premarket trading at $1.77, off 86% on trading volume of 2.7 million shares. The stock closed at $12.63 on Thursday, down 15% as the market absorbed the Swiss news–but then, well after the market closed Thursday, FXCM issued a terse press release with a bombshell announcement: because of the day’s manic trading, its clients had taken a bath. Those clients–many of them mom-and-pop investors with small accounts that lever up to try to juice returns–now owe the firm $225 million. In the absence of those funds, the company is now short of its regulatory capital requirements. Read it for yourself:
Read more Click Here / www.trade4x.net
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