CFTC Orders FXCM, to Pay More Than $843,000 | Forex Factory

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Attachments: CFTC Orders FXCM, to Pay More Than $843,000
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CFTC Orders FXCM, to Pay More Than $843,000

  • #1
  • First Post: Sep 8, 2015 3:09pm Sep 8, 2015 3:09pm
This is Not 100% FXCM Fault

http://www.cftc.gov/PressRoom/PressReleases/pr7222-15
  • #2
  • Sep 8, 2015 6:07pm Sep 8, 2015 6:07pm
they dropped the GBP/NZD...slobs....love their charts
  • #3
  • Sep 8, 2015 6:21pm Sep 8, 2015 6:21pm
glad to see the keeping somewhat regulation and close supervision of the FX world.
All posts are my personal opinion
  • #4
  • Sep 8, 2015 9:50pm Sep 8, 2015 9:50pm
FXCM shares are already trading for less than a dollar and still going down after CHF crash and now this fine.
  • #5
  • Sep 9, 2015 5:35am Sep 9, 2015 5:35am
What did anyone expect from a company who's Officers read like a russian mafia roster? It seems forex trading in USA is on the out. If FXCM goes I would expect others to fall.
FF = Forex Faggots
  • #6
  • Sep 9, 2015 7:39am Sep 9, 2015 7:39am
I doubt this came as their surprise like they had no idea they were facing an oversight fine. But pay attention this is not for market making, it is for oversight. So it does not really reflect on FXCM's business model since it can't be 200% or 100%. Even ordinary businesses get hit with bank chargebacks for credit cards all the time even with safeguards in place. Not all can be caught. The "out flux" of US brokers is due to the "on the fly" made up fines by the US gov making their own opportunities against brokers.
  • #7
  • Sep 9, 2015 8:19am Sep 9, 2015 8:19am
Quoting PipShot
I doubt this came as their surprise like they had no idea they were facing an oversight fine. But pay attention this is not for market making, it is for oversight. So it does not really reflect on FXCM's business model since it can't be 200% or 100%. Even ordinary businesses get hit with bank chargebacks for credit cards all the time even with safeguards in place. Not all can be caught. The "out flux" of US brokers is due to the "on the fly" made up fines by the US gov making their own opportunities against brokers.

Without admitting or denying the allegations against it, FXCM has settled CFTC charges that it failed to supervise an account ultimately determined to have been involved in wrongdoing and for inadvertently omitting certain documents from its responses to a CFTC documents request. In addition to certain monetary penalties as more specifically set forth in the CFTC Order, FXCM has agreed to take steps to avoid similar occurrences in the future.
  • #8
  • Sep 9, 2015 10:48am Sep 9, 2015 10:48am
Quoting Nabz
FXCM shares are already trading for less than a dollar and still going down after CHF crash and now this fine.
Hi Nabz,

The stock price is a reflection of shareholder value as a result of the Leucadia loan. While I can't personally comment on it beyond citing info that's already publicly available, below is an excerpt from a LeapRate article that @shrike pointed out recently:

"most of the overall writeoff/loss is non cash and non operational, and has nothing to do with FXCMs operations and corporate health, but rather with accounting charges FXCM needs to take due to US GAAP accounting rules thanks to the future benefit that FXCM gave up to Leucadia."


Quoting shrike
Here is a nice article about FXCM stock price: http://leaprate.com/2015/08/misunder...and-valuation/ Its not very attractive to hold fxcm stock due to the loan-agreement with Leucadia. The core retail business is doing alright tho.

As our CEO Drew Niv mentioned during our most recent earnings call, our plan is to pay back that loan by the end of the year, and we have outlined the non-core asset sales to accomplish this:

Attached Image (click to enlarge)
Click to Enlarge Name: DTfLu3b.jpg Size: 161 KB

The terms of the Leucadia loan impact FXCM shareholders, not FXCM account holders. I'm not authorized to comment on our stock, but you're welcome to contact our Investor Relations department with any related questions: http://bit.ly/1SEYg7W
  • #9
  • Last Post: Sep 9, 2015 10:54am Sep 9, 2015 10:54am
Quoting 8fingers
What did anyone expect from a company who's Officers read like a russian mafia roster? It seems forex trading in USA is on the out. If FXCM goes I would expect others to fall.

Hi 8fingers,

Good to see you back on the forums!

We pride ourselves in continuing to provide our clients with the same level of service and support to which they are accustomed. Despite the events of January 15th, our capitalization remains at levels similar to before the SNB event: http://bit.ly/10Pq5FJ

You commented specifically about forex trading in US, so its worth noting the latest capital figures for our US entity as well as all other US-regulated forex brokers (RFEDs) as reported to the CFTC.

Attached Image

The column that says "Total Amount of Retail Forex Obligation" shows the amount of money retail traders have on deposit with FXCM US.

Our customer equity grew by $68 million or 10% last quarter. While $47 million of that increase was due to our acquisition of CitiFXPro, the remainder was organic. It's a strong vote of confidence that Citibank chose FXCM for its customers when they decided to exit the business in June.
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