FXCM US Reaches Settlement with CFTC on SNB Related Matter
13 Februar 2017 - 10:00PM
FXCM Inc. (NASDAQ:FXCM) (“FXCM” or the "Company"), today issued a
statement on the settlement of the civil action filed by the
Commodity Futures Trading Commission (“CFTC”) against its U.S.
subsidiary, Forex Capital Markets LLC (“FXCM US”) in the Southern
District Court of New York on August 18, 2016. The action
relates to the brief undercapitalization FXCM US suffered as the
direct result of the Swiss National Bank suddenly and unexpectedly
announced on January 15, 2015 that it was 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.
This settlement, which includes a fine of $650,000, brings to a
close all material U.S. regulatory matters affecting FXCM US.
Disclosure Regarding Forward-Looking
Statements
In addition to historical information, this release
contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934 and/or the Private Securities Litigation
Reform Act of 1995, which reflect FXCM's current views with respect
to, among other things, its operations and financial performance in
the future. These forward-looking statements are not historical
facts and are based on current expectations, estimates and
projections about FXCM's industry, business plans, management's
beliefs and certain assumptions made by management, many of which,
by their nature, are inherently uncertain and beyond our control.
Accordingly, readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict including, without limitation, risks associated with
FXCM’s plans to shut down its US subsidiary and a potential sale of
its US customer accounts, risks associated with FXCM’s strategy to
focus on its operations outside the United States, risks associated
with the events that took place in the currency markets on January
15, 2015 and their impact on FXCM's capital structure, risks
associated with FXCM's ability to recover all or a portion of any
capital losses, risks relating to the ability of FXCM to satisfy
the terms and conditions of or make payments pursuant to the terms
of the finance agreements with Leucadia, as well as risks
associated with FXCM’s obligations under its other financing
agreements, risks related to FXCM's dependence on FX market makers,
market conditions, risks associated with FXCM’s litigation with the
National Futures Association and the Commodity Futures Trading
Commission or any other potential litigation or regulatory
inquiries to which FXCM may become subject, risks associated with
potential reputational damage to FXCM resulting from FXCM’s plans
to shut down its US subsidiary, and those other risks described
under "Risk Factors" in FXCM Inc.'s Annual Report on Form 10-K,
FXCM Inc.'s latest Quarterly Report on Form 10-Q, and other reports
or documents FXCM files with, or furnishes to, the SEC from time to
time, which are accessible on the SEC website at sec.gov. This
information should also be read in conjunction with FXCM's
Consolidated Financial Statements and the Notes thereto contained
in FXCM's Annual Report on Form 10-K, FXCM Inc.'s latest Quarterly
Report on Form 10-Q, and in other reports or documents FXCM files
with, or furnishes to, the SEC from time to time, which are
accessible on the SEC website at sec.gov.
These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary
statements that are included in this release and in our SEC
filings. FXCM Inc. undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
About FXCM Inc.
FXCM Inc. (NASDAQ:FXCM) is a publicly traded
company which owns 50.1% of FXCM Group, LLC (FXCM Group).
FXCM Group is a holding company of Forex
Capital Markets LLC, (FXCM US), Forex Capital Markets Limited,
inclusive of all EU branches (FXCM UK), FXCM Australia Pty.
Limited, (FXCM AU), and all affiliates of aforementioned firms, or
other firms under the FXCM group of companies [collectively
"FXCM"]. FXCM Group is owned and operated by FXCM
Inc. (NASDAQ:FXCM) and Leucadia National Corporation
(NYSE:LUK). Leucadia National Corporation is a multi-billion dollar
diversified holding company engaged through its consolidated
subsidiaries in a variety of businesses.
FXCM is a leading provider of online foreign
exchange (FX) trading, CFD trading, spread betting and related
services. The company's mission is to provide global traders with
access to the world's largest and most liquid market by offering
innovative trading tools, hiring excellent trading educators,
meeting strict financial standards and striving for the best online
trading experience in the market. Clients have the advantage of
mobile trading, one-click order execution and trading from
real-time charts. In addition, FXCM offers educational courses on
FX trading and provides trading tools proprietary data and premium
resources. FXCM Pro provides retail brokers, small
hedge funds and emerging market banks access to wholesale execution
and liquidity, while providing high and medium frequency funds
access to prime brokerage services via FXCM Prime.
Trading foreign exchange and CFDs on margin carries
a high level of risk, which may result in losses that could exceed
your deposits, therefore may not be suitable for all investors.
Read full disclaimer.
Jaclyn Sales, 646-432-2463
Vice-President, Corporate Communications
jsales@fxcm.com
investorrelations@fxcm.com
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