FXCM to pay a new fine of $650,000 in relation to the Swiss Franc exchange rate
FXCM Inc. (NASDAQ:FXCM) (“FXCM” or the “Company”), issued a statement on the settlement of the civil action filed by the Commodity Futures Trading Commission (“CFTC”) against its U.S. subsidiary, Forex Capital Markets LLC (“FXCM US”) in the Southern District Court of New York on August 18, 2016.
The action relates to the brief undercapitalization FXCM US suffered as the direct result of the Swiss National Bank suddenly and unexpectedly announced on January 15, 2015 that it was abandoning its historical policy of pegging the Swiss Franc to a fixed exchange rate of 1.2000 Swiss Francs per Euro.
The action also concerns the negative-balance protection policy of FXCM US prior to January 15, 2015, a policy FXCM US no longer provides to US customers.
This settlement, which includes a fine of $650,000, brings to a close all material U.S. regulatory matters affecting FXCM US.