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  • #5,781
  • Jan 15, 2015 7:11pm Jan 15, 2015 7:11pm
FXCM just announced they have an negative equity balance due to them of $225million!!! WOW!! Will they be ok???
Trade what you see, not what you think!
  • #5,782
  • Jan 15, 2015 7:18pm Jan 15, 2015 7:18pm
First known causality from the SNB is ..........

Global Brokers NZ Ltd....which is closing its doors due to losses from today's Forex moves.

http://www.bloomberg.com/news/2015-0...iss-shock.html
So, you think you have rights? LOL
  • #5,783
  • Jan 15, 2015 7:19pm Jan 15, 2015 7:19pm
Quoting OMGtrader
FXCM just announced they have an negative equity balance due to them of $225million!!! WOW!! Will they be ok???
I was wondering the same. Their stock price was down 15% today.
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  • #5,784
  • Jan 15, 2015 7:24pm Jan 15, 2015 7:24pm
Quoting srt
{quote} I was wondering the same. Their stock price was down 15% today.
they stated with that huge debit balance, their capital reserves may not meet regulators..... Seems to me they need to raise cash/burrow to shore up their reserves...
Trade what you see, not what you think!
  • #5,785
  • Jan 15, 2015 7:47pm Jan 15, 2015 7:47pm
The sad part is that the bucketshop brokers will profit from it.

Since they use a internal accounting to offset trades and pretty much no LP, they can sort it out on their books.

The margin calls will be their gain and customers gains will be treated as "no fill" !!

Life is not fair!!!!
So, you think you have rights? LOL
  • #5,786
  • Jan 15, 2015 9:02pm Jan 15, 2015 9:02pm
Quoting Jason Rogers
Hi Everyone, If you have questions about the execution of a particular trade on your account,
//----

hey jason..... kinda sure you have your hands full right now, but if you get a chance can you possibly give a timeframe for the margin required for chf pairs to revert back to normal.....

obviously chf trades are being discouraged , and wisely so..... the margin required is now 10 times or higher for all chf pairs..... ie, 20,000 now for usdchf where prior it was 2000.....

just wonderin..... that's all..... and only if you have the time.......thanks.....h
to trade and code, keep both simple... no call to impress....h
  • #5,787
  • Jan 15, 2015 9:18pm Jan 15, 2015 9:18pm
i have an account at FXCM..
Will they be Ok...
  • #5,788
  • Jan 15, 2015 10:17pm Jan 15, 2015 10:17pm
Doesn't sound like it. Unless they have a tree that grows money...225 million lost, wow!
“Every single day, ordinary people do extraordinary things"
  • #5,789
  • Jan 15, 2015 10:19pm Jan 15, 2015 10:19pm
Quoting psychop13
i have an account at FXCM.. Will they be Ok...
Me too, and can I get my money out?
  • #5,790
  • Edited 10:49pm Jan 15, 2015 10:25pm | Edited 10:49pm
Here's why I'm concerned ... . (And feel free to correct me if I'm wrong; it's been a long time since I've had to pour over a 10-Q and related documents ... ).

A $225 million liability would virtually wipe out two full quarters of net revenues:

Attached Image (click to enlarge)
Click to Enlarge Name: FXCM Net Income.jpg Size: 80 KB


Their net income from continuing ops for the last four quarters was a paltry net $3.427 million ... .

Naturally, there may be fine print somewhere that allows them some recourse to recover some of these funds, but the legal processes involved in doing that could take years ... .

That being said, my understanding is that SEC regulations require brokers to segregate client funds from the broker's funds and that clients' funds cannot be used by the broker for operating expenses, etc. So, assuming that FXCM remains compliant with SEC regulations in that regard (and I assume they will), client funds should not be in danger of being lost, even if the broker can no longer remain in business because they are insolvent.

However, I personally would welcome a clarification of the press release, which merely states that FXCM has $225 million in negative equity balance due it by customers and that they may be temporarily out of compliance with SEC regs. I simply do not want to wake up tomorrow and find an e-mail in my in-box that says that FXCM is ceasing operations due to Swissie losses ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #5,791
  • Jan 15, 2015 10:28pm Jan 15, 2015 10:28pm
That's why they should let free markets be free. Intervention from banks cause these crazy price movements! Just don't understand why back in 2012 when bank of japan was doing the same manipulation in keeping their currency from being to strong against dollar and other pairs... it gradually moved, as opposed to the bs today!?
“Every single day, ordinary people do extraordinary things"
  • #5,792
  • Jan 15, 2015 10:54pm Jan 15, 2015 10:54pm
Quoting srt
{quote} I was wondering the same. Their stock price was down 15% today. {image}
And then down another 12% in after hours trading (to 11.10 per share) ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #5,793
  • Jan 15, 2015 11:01pm Jan 15, 2015 11:01pm
In contrast, there is this reassuring statement from Oanda:

Attached Image (click to enlarge)
Click to Enlarge Name: Oanda Statement.jpg Size: 70 KB


Just saying ... . Nothing reassuring about the FXCM statement ... at all ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #5,794
  • Jan 15, 2015 11:16pm Jan 15, 2015 11:16pm
I notice that "Jason Rogers", the FXCM Brand Ambassador, has unsubscribed from this thread.

As far as I can determine, as of Sept 30th FXCM had client capital of 1.3 billion dollar. So now the client capital is down 225 million beyond what was in their accounts, leading me to believe that client capital is in total down to at least 1 billion dollars, and probably more likely $800,000 given that many accounts were wiped out. As of Sept 30, FXCM as a company had net cash of 139 million. Now client losses are 225 million, so 100 million in excess of FXCM reserves. At today's prices, company is valued at about $900 million in terms of stock market value. They need to do some serious PR work to instill confidence. I would assume that their stock will open even lower tomorrow. My bet is that investors such as myself will withdraw their money due to lack of confidence in the way FXCM is handling the current situation -- can't get anyone on the phone, and I am a preferred "Active Trader" with a supposedly dedicated "Active Trader" account manager to assist me. I am assuming that my account was segregated and that my money is still my money. I certainly hope so. Whether or not FXCM survives this ordeal will depend on how straight up they are with customers about access to their money.

When the shit hits the fan, clients like to know that they are being taken care of. "Jason Rogers" unsubscribing from this thread and no one at FXCM answering phones is not reassuring. I traded CHF once a month or two ago. I had no open positions of any kind when the shit hit the fan with CHF this morning, just my account sitting in 100% cash. Is it too much to ask that I receive a guarantee that I will be able to withdraw my full account value unimpeded if I choose to do so?
  • #5,795
  • Jan 15, 2015 11:36pm Jan 15, 2015 11:36pm
Quoting Pmd1963
I notice that "Jason Rogers", the FXCM Brand Ambassador, has unsubscribed from this thread. As far as I can determine, as of Sept 30th FXCM had client capital of 1.3 billion dollar. So now the client capital is down 225 million beyond what was in their accounts, leading me to believe that client capital is in total down to at least 1 billion dollars, and probably more likely $800,000 given that many accounts were wiped out. As of Sept 30, FXCM as a company had net cash of 139 million. Now client losses are 225 million, so 100 million in excess of...
me too, pmd, i didn't have any position open today and my account is sitting in cash.
doesn't look promising at all.
this will be a long week-end for fxcm and for us.
please anyone having any contact with fxcm representatives come here and keep us posted.
also, if you guys stay and think about it for a minute, this is the end of retail fx.
regulators will eat us alive. they'll raise the minimum account requirement to levels you'd never imagine, kill the leverage (the evil weed), etc.
if you ever played poker before uigea and before the collapse of fulltilt poker, you certainly have some idea that what we're doing here right now (playing economic games) will end up in tears.
thanks!

p.s. jason unsuscribing from this forum is more bearish than fxcm's balance sheet.
  • #5,796
  • Jan 15, 2015 11:49pm Jan 15, 2015 11:49pm
Wow, he did unsubscribe 4 hours ago! That's reassuring!
“Every single day, ordinary people do extraordinary things"
  • #5,797
  • Jan 15, 2015 11:54pm Jan 15, 2015 11:54pm
Quoting ZebraSquirl
Here's why I'm concerned ... . (And feel free to correct me if I'm wrong; it's been a long time since I've had to pour over a 10-Q and related documents ... ). A $225 million liability would virtually wipe out two full quarters of net revenues: {image} Their net income from continuing ops for the last four quarters was a paltry net $3.427 million ... . Naturally, there may be fine print somewhere that allows them some recourse to recover some of these funds, but the legal processes involved in doing that could take years ... . That being said, my...
thanks for clarifying this aspect!
basically, what has to happen for this thing to get back to normal?
what's the playbook for fxcm?
do they need someone to provide them with liquidity?
are they fundamentally screwed at this point?
  • #5,798
  • Jan 15, 2015 11:58pm Jan 15, 2015 11:58pm
Quoting Pmd1963
I notice that "Jason Rogers", the FXCM Brand Ambassador, has unsubscribed from this thread. As far as I can determine, as of Sept 30th FXCM had client capital of 1.3 billion dollar. So now the client capital is down 225 million beyond what was in their accounts, leading me to believe that client capital is in total down to at least 1 billion dollars, and probably more likely $800,000 given that many accounts were wiped out. As of Sept 30, FXCM as a company had net cash of 139 million. Now client losses are 225 million, so 100 million in excess of...
Just withdraw all your money NOW if you don't feel safe!!! That's the best guarantee. Are you gonna really believe them when they "guarantee" to you that all your money is withdrawable?
Make your losses in demo. Earn your profits live.
  • #5,799
  • Jan 15, 2015 11:59pm Jan 15, 2015 11:59pm
Yea they need their clients to pay back close to the 225 million they lost and I am sure most are in the negatives.
“Every single day, ordinary people do extraordinary things"
  • #5,800
  • Jan 16, 2015 12:12am Jan 16, 2015 12:12am
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“Every single day, ordinary people do extraordinary things"
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