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FXCM Faces Losses on Franc Trades as Swiss Shock Spreads

From businessweek.com

Losses mounted from the Swiss currency shock as the largest U.S. retail foreign-exchange brokerage said client debts threatened its compliance with capital rules, a dealer in New Zealand went out of business and a British broker said it was insolvent. FXCM Inc. (FXCM:US), which handled a record $1.4 trillion of trades by individuals last quarter, said clients owe $225 million on their accounts after the Swiss National Bank’s decision to abandon the franc’s cap against the euro roiled markets worldwide. Global Brokers NZ Ltd. said losses from the franc’s surge are forcing it to shut down. Alpari (UK) Ltd. said it ... (full story)

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