FXCM Inc (NYSE:FXCM) has today announced that starting Wednesday, January 21, 2015 the firm will increase margin requirements globally on forex instruments, as well as gold in its overseas jurisdictions.
The new margin requirements for its overseas jurisdictions will be consistent with the firm’s most conservative margin requirements currently in place for clients of Forex Capital Markets, LLC, its U.S. entity. These margin requirements may be adjusted at a later date and clients are encouraged to continue to read all firm communications.
FXCM believes, at this time, there is a high level of uncertainty in the currency markets that could destabilize markets throughout 2015.
There are two major upcoming news events which may cause significant volatility: the ECB Bank Rate Decision on Thursday and the Greek Election on Sunday. FXCM’s decision to increase margin requirements is in order to protect clients during extreme market volatility.
“FXCM would like to reiterate that trading on FXCM’s systems continues in the normal course of business,” said Drew Niv, CEO of FXCM. “It is important to stress that FXCM is not insolvent, has not filed for any form of bankruptcy, and is in compliance with all regulatory capital requirements in the jurisdictions in which it operates,” he added.
For the official announcement from FXCM, click here.