Retail forex broker FXCM Inc (NYSE:FXCM) issued a note today that it was business as usual during the post Brexit vote market volatility today, although it plans to keep margin requirements high until markets settle down.
Assuming that’s it for FXCM, the company got through today’s price shocks in the currency markets in a much more uneventful way than last year’s surprise Swiss Franc spike. FXCM narrowly avoided bankruptcy after that event, receiving a $300 million lifeline loan from Leucadia National Corp (NYSE:LUK) which it is still working to pay off.
The FXCM release reads as follows:
FXCM Makes Special Announcement Following Brexit
Financial Position Remains Solid
Trading Platform Functioned Normally
Margins Remain Elevated
NEW YORK, June 24, 2016 — FXCM Inc. (NYSE:FXCM) (“FXCM” or “the Company”), a leading online provider of foreign exchange (FX) trading and related services, announced that FXCM systems and operations functioned without any material adversity during Brexit.
“FXCM is happy with the risk management steps we took including our decision to gradually raise margins as we did heading into the vote,” said Drew Niv, CEO of FXCM. “The FXCM Trading Station operated normally throughout the Brexit market volatility and we are extremely pleased with our liquidity providers, our staff who worked through the night and our clients who continued to heed our warnings during these historical market movements.”
FXCM’s risk committee will continue to closely monitor and hedge the Company’s exposure, margins will remain elevated until we see the market return to more normal liquidity levels and we hope to relax margin requirements in the coming days.