Actionable news
0
All posts from Actionable news
Actionable news in FXCM: FXCM Inc,

CFTC sues FXCM over prior capital shortfall, customer guarantees

NEW YORK, Aug 18 (Reuters) - The U.S. Commodity Futures Trading Commission on Thursday said it filed a civil lawsuit against retail broker Forex Capital Markets LLC, saying it was under-capitalized in January, 2015, and failed to report its capital shortfall in a timely manner.

New York-based FXCM is the largest U.S.-based retail foreign exchange broker, with approximately 200,000 customers worldwide and 88,000 in the United States.

The complaint, filed with the U.S. District Court for the Southern District of New York, also said FXCM guaranteed against customer losses, by "zeroing out negative customer balances," which is a CFTC violation.

CFTC rules explicitly...


More