FXCM Faces Losses on Franc Trades as Swiss Shock Spreads
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Shares in the largest U.S. retail foreign-exchange brokerage slumped in premarket trading and their opening was delayed in New York as upheaval caused by a surge in the Swiss franc rippled from New Zealand to the U.S.
FXCM Inc., which handled a record $1.4 trillion of trades by individuals last quarter, said clients owe $225 million on their accounts after the Swiss National Bank’s decision to abandon the franc’s cap against the euro roiled markets worldwide. Global Brokers NZ Ltd. said losses from the franc’s surge were forcing it to shut down. Alpari (UK) Ltd. said it “entered into insolvency.”