Breaking: FXCM Charged with Undercapitalization and Guaranteeing Loss Protection
Posted: Wed Aug 17, 2016 9:33 pm
The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against foreign exchange brokerage FXCM Inc (NYSE:FXCM). According to the regulator the broker failed to meet capital requirements, marketing guaranteeing against customer losses and failure to timely report its undercapitalization.
The biggest Retail Foreign Exchange Dealer (RFED) in the U.S., FXCM Inc (NYSE:FXCM), was forced to take out a loan from Leucadia National in the aftermath of the Swiss National Bank’s decision to stop maintaining an exchange rate floor under the EUR/CHF pair.
According to the CFTC complaint which it filed in relation to the civil enforcement action against ... (read more)