FXCM Discloses FSA Probe

Discussion in 'Forex Brokers' started by Options12, Nov 16, 2012.

  1. Options12

    Options12 Guest

    The FSA investigation follows a similar probe by U.S. regulators in 2011, in which the Commodity Futures Trading Commission charged that FXCM failed to change the price a customer received on a currency transaction if an exchange rate became more profitable for the investor while a trade was in progress. However, according to the CFTC, FXCM did change the price if the rates shifted in FXCM's favor.

    FXCM in August 2011 agreed to pay about $14.2 million to settle those charges.

    In Friday's filing, FXCM estimated that its possible loss related to the FSA investigation and other claims or litigation could be up to $5 million, as of Sept. 30.