FXCM to Forgive Majority of Clients Who Incurred Negative Balances
29 January 2015 - 12:56AM
FXCM Inc. (NYSE:FXCM), announced today its decision to forgive
approximately 90% of its clients who incurred negative balances in
certain jurisdictions, on January 15, 2014 as a result of the Swiss
National Bank announcement on that date. FXCM will notify the
applicable clients and adjust applicable client account statements
in the next 24-48 hours.
"FXCM worked diligently to reach this decision and we are
extremely appreciative of our clients for their patience and
loyalty as we worked through this," said Drew Niv, CEO of
FXCM.
The SNB announcement, extreme price movements and the resulting
lack of liquidity were exceptional and unprecedented events causing
many market participants to incur trading losses. These events were
unforeseen and beyond the control of FXCM.
FXCM will also notify certain clients (such as institutional,
high net worth, and experienced traders who generally maintain
higher account balances) requesting payment of negative balances,
pursuant to the terms of the FXCM master trading agreements.
This group represents approximately 10% of clients who
incurred negative balances which comprises over 60% of the
total debit balances owed.
Disclosure Regarding Forward-Looking
Statements
Certain statements contained herein may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and/or the Private Securities Litigation Reform Act of
1995, which reflect FXCM's current views with respect to, among
other things, its operations and financial performance in the
future. These forward-looking statements are not historical facts
and are based on current expectations, estimates and projections
about the FXCM's industry, management's beliefs and certain
assumptions made by management, many of which, by their nature, are
inherently uncertain and beyond our control. Accordingly, readers
are cautioned that any such forward-looking statements are not
guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict
including, without limitation, risks associated with the events
that took place in the currency markets on January 15, 2015 and the
impact to FXCM's capital structure, risks associated with FXCM's
ability to recover all or a portion of any losses, risks relating
to the ability of FXCM to satisfy the terms and conditions of or
make payments pursuant to the terms of its agreements with
Leucadia, risks related to its dependence on FX market makers,
market conditions and those other risks described under "Risk
Factors" in FXCM Inc.'s Annual Report on Form 10-K and other
reports or documents FXCM files with, or furnishes to, the SEC from
time to time, which are accessible on the SEC website at sec.gov.
This information should also be read in conjunction with the FXCM's
Consolidated Financial Statements and the Notes thereto contained
in the FXCM's Annual Report on Form 10-K, and in other reports or
documents the FXCM files with, or furnishes to, the SEC from time
to time, which are accessible on the SEC website at sec.gov.
About FXCM Inc.
FXCM Inc. (NYSE:FXCM) is a global online provider of foreign
exchange (forex) trading and related services to retail and
institutional customers world-wide.
At the heart of FXCM's client offering is No Dealing Desk forex
trading. Clients benefit from FXCM's large network of forex
liquidity providers enabling FXCM to offer competitive spreads on
major currency pairs. Clients have the advantage of mobile trading,
one-click order execution and trading from real-time charts. FXCM's
U.K. subsidiary, Forex Capital Markets Limited, also offers CFD
products with no re-quote trading and allows clients to trade oil,
gold, silver and stock indices along with forex on one platform. In
addition, FXCM offers educational courses on forex trading and
provides free news and market research through DailyFX.com.
Trading foreign exchange and CFDs on margin carries a high level
of risk, and may not be suitable for all. Read full disclaimer.
Visit www.fxcm.com and follow us on Twitter
@FXCM, Facebook FXCM, Google+
FXCM or YouTube FXCM.
CONTACT: FXCM Inc.
Jaclyn Klein, 646-432-2463
Vice-President, Corporate Communications
jklein@fxcm.com
investorrelations@fxcm.com
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