AVOID / LEAVE FXCM Based On Their ' Farce Majeure '

Splitlink

Legendary member
10,850 1,234
So, SNB=force majeure? They'll be pleased about that. It's like having the Keys to the Kingdom.

You short the Swiss franc at your peril!
 

spinola

Established member
614 138
So, SNB=force majeure? They'll be pleased about that. It's like having the Keys to the Kingdom.

You short the Swiss franc at your peril!

Not just the Swiss bank though. What about the next announcement from ANY government that creates a liquidity vacuum ?

It forces , excuse pun , any client to accept an extra risk, when there are other companies who will not use legalease , to include / define central banks, and government announcements being up there with WAR, earthquakes and random acts of nature etc.

I mean , If, Mario Draghi farts, and my trade starts to hum, does that mean I need to .S-hit myself ?


< sniff, sniff >


:eek:
 

Jason Rogers

Senior member
2,771 93
Not just the Swiss bank though. What about the next announcement from ANY government that creates a liquidity vacuum ?

It forces , excuse pun , any client to accept an extra risk, when there are other companies who will not use legalease , to include / define central banks, and government announcements being up there with WAR, earthquakes and random acts of nature etc.

I mean , If, Mario Draghi farts, and my trade starts to hum, does that mean I need to .S-hit myself ?


< sniff, sniff >


:eek:


Here is the press release we just issued:

FXCM to Forgive Majority of Clients Who Incurred Negative Balances

NEW YORK, Jan. 28, 2015 (GLOBE NEWSWIRE) -- 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, 2015 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.

Read the full press release: http://ir.fxcm.com/releasedetail.cfm?ReleaseID=893269


Jason
 
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spinola

Established member
614 138
Good move on FXCM part. well done.

all the best.



:)
 
 
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