The USA Commodity Futures Trading Commission hitting New York-based Forex broker Forex Capital Markets (FXCM) amongst a case yesterday, exactly FXCM issued a real strongly-worded tilt today that disputes the allegations in addition to rejects outright to a greater extent than or less of the claims the regulatory means has made.
Jaclyn Sales, Corporate Communications in addition to Investor Relations for FXCM, states that the CFTC is false when it claimed that FXCM did non inform regulators of the working capital alphabetic lineament shortfall inwards a timely manner.
According to FXCM, the CFTC in addition to the NFA were at nowadays notified of the massive working capital alphabetic lineament shortfall that resulted from the SNB conclusion on Jan 15, 2015:
“Equally unwarranted is the CFTC's claim that the Company did non timely notify the CFTC of its cyberspace working capital alphabetic lineament shortfall. As noted above, the regulators were fully apprised of the working capital alphabetic lineament shortfall and, inside hours of the SNB Event, the CFTC in addition to the NFA were on site at FXCM's offices.”Yesterday, the CFTC too charged that FXCM misled clients past times leading them to believe that they were protected from incurring negative balances, exactly FXCM says that is non the illustration in addition to that the companionship went out of its way to brand certain traders were fully informed of the risks:
“To the contrary, FXCM repeatedly represented to in addition to warned its customers of the pregnant risks of trading FX in addition to that such trading is appropriate exclusively for individuals who tin sack assume run a jeopardy of loss inwards excess of their investment in addition to margin deposit.”FXCM went on to explicate that all clients were required to sign waivers prior to engaging inwards whatsoever currency trades.
As far equally FXCM is concerned, the brokerage was a "victim of the SNB Event" in addition to the CFTC has no grounds to file an undercapitalization violation claim inwards such unprecedented circumstances.