FXCM To Pay 650K To Settle CFTC's Undercapitalization Claim

(RTTNews) - FXCM Inc. (FXCM) Monday said it reached a settlement with the Commodity Futures Trading Commission related to the lawsuit filed against its US subsidiary Forex Capital Markets LLC for being undercapitalized.

FXCM US has agreed to pay $650,000 that brings close to all US regulatory materials affecting FXCM US.

The CFTC had charged the currencies broker for being undercapitalized in January 2015 due to the direct result of the Swiss National Bank suddenly and unexpectedly 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.