Forex broker FXCM, one of the worst hit by recent Swiss franc volatility, is to forgive customer losses of up to US$50,000.
It comes after IG Group this week warned that it didn’t expect much of the £18.4mln owed by clients to be repaid.
When the Swiss removed the ceiling against the Euro, and the franc rallied sharply, some 715 IG clients had £161mln of ‘short’ exposure between them.
FXCM, in a statement today, said changes to its negative balance policy for new and existing clients would see the first US$50,000 of negative balances waived, but customers owing more than US$50,000 would be responsible for the balances owed thereafter.
It applies to losses that were incurred within 24hrs. And it excludes customers that accessed FXCM via ‘white-label’ agreements with other intermediaries and other groups of customers like professional investors.