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  • #5,821
  • Jan 16, 2015 4:08am Jan 16, 2015 4:08am
Quoting goldfinch
Alpari has gone bust, If I had an account with FXCM, I would try to get my money back today.
Here's the source of that rumor: http://www.telegraph.co.uk/finance/c...-business.html

and here's the primary source: http://www.alpari.co.uk/client-updat...t-announcement
  • #5,822
  • Jan 16, 2015 4:10am Jan 16, 2015 4:10am
Quoting Naddmer
{quote} But that would be the problem of the clients, isn't it? It should not have any impact on the equity of FXCM if the clients accounts were segregated properly from FXCMs equity. The clients owe FXCM the negative account balance and they can siphon it in if it were so. )

Correct, however the negative equity of their customers reflect on their overall capital requirements and as they would struggle getting the money back from their clients, they will have to make up the shortfall themselves first thing when NY opens this morning. They can't tell the regulator to hang tight while they collect from their clients all over the world, plenty of whom will just ignore FXCM's requests for additional funds, it would be way too costly for FXCM to chase all their clients all over the world.

So it is left to FXCM to find 225Mn in the next few hours or go bust.
A contrarian; I always disagree.
  • #5,823
  • Jan 16, 2015 4:10am Jan 16, 2015 4:10am
3 minutes after snb statement I request withdrawal of maximal available amount (due to margin requirements) from my account via myfxcm.com. Now My account is -100% and I still don´t know if they will send me my withdrawal or put that money back...

I have 3 types of account statements, where I see withdrawal request from mt4, trade station and myfxcm.com.
But would it help? FXCM is liquidity provider for some smaller brokers. For example I know, that 1 broker from UK, who is pairing trades via FXCM lost 400 milions € in 1 hour. They have to send this money back to FXCM, but if they will do it, they will bankrupt.

I personally think, that this is end of big broker.

And 1 info. ATC is pairing trades with FXCM and Spotex. FXCM send them off quotes and spotex pairs the trades on 1.175.
IF spotex was available to pair trades, why no currenex who is the biggest LP from FXCM?
  • #5,824
  • Jan 16, 2015 4:11am Jan 16, 2015 4:11am
Quoting goldfinch
Alpari has gone bust, If I had an account with FXCM, I would try to get my money back today.
Alpari is busted too? Where in the news..
  • #5,825
  • Jan 16, 2015 4:15am Jan 16, 2015 4:15am
Quoting goldfinch
Looks like the FXCM rep subscribed to this thread again, they probably realised their PR disaster by unsubscribing at the first place, you can't have the guy representing you running away from their customers who are rightly concerned at this point.
Where do you see that?

As of now Jason is still unsubscribed:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_005.jpg Size: 80 KB


http://www.forexfactory.com/jason*rogers

Quoting goldfinch
Correct, however the negative equity of their customers reflect on their overall capital requirements and as they would struggle getting the money back from their clients, they will have to make up the shortfall themselves first thing when NY opens this morning.
Ah - ok ... in giving credit to the clients they have to maintain a reserve like a bank. Did not think of that.
Credit linked notes come to my mind.
  • #5,826
  • Jan 16, 2015 4:15am Jan 16, 2015 4:15am
Well, for the EU clients it should be very save up to 50.000 GBP for any case at anytime.

http://www.fxcm.com/uk/advantages/safety-of-funds/
  • #5,827
  • Jan 16, 2015 4:18am Jan 16, 2015 4:18am
Quoting goldfinch
{quote} Correct, however the negative equity of their customers reflect on their overall capital requirements and as they would struggle getting the money back from their clients, they will have to make up the shortfall themselves first thing when NY opens this morning. They can't tell the regulator to hang tight while they collect from their clients all over the world, plenty of whom will just ignore FXCM's requests for additional funds, it would be way too costly for FXCM to chase all their clients all over the world. So it is left to FXCM to...
i have fxcm au account, do you think it's the same if fxcm announced insolvent?
  • #5,828
  • Jan 16, 2015 4:22am Jan 16, 2015 4:22am
FXCM has imo a big problem check out latest US cftc data they have only roughly 14 mil excess capital so these losses because of clients negative equity can not be covered.

http://www.cftc.gov/ucm/groups/publi...cmdata1114.pdf
  • #5,829
  • Jan 16, 2015 4:23am Jan 16, 2015 4:23am
Quoting barkie
FXCM has imo a big problem check out latest US cftc data they have only roughly 14 mil excess capital so these losses because of clients negative equity can not be covered. http://www.cftc.gov/ucm/groups/publi...cmdata1114.pdf

Correct, they have to find 225 Million by 0900 NY time. They either issue share capital, find an investor, sell the business or close it down at 0901 EST.
A contrarian; I always disagree.
  • #5,830
  • Jan 16, 2015 4:29am Jan 16, 2015 4:29am
Quoting goldfinch
{quote} Correct, they have to find 225 Million by 0900 NY time. They either issue share capital, find an investor, sell the business or close it down at 0901 EST.
Or regulator can give them special in this indeed special case.
  • #5,831
  • Jan 16, 2015 4:41am Jan 16, 2015 4:41am

From businessweek.com

http://www.forexfactory.com/resource...tory-quote.png

Losses mounted from the Swiss currency shock as the largest U.S. retail foreign-exchange brokerage said client debts threatened its compliance with capital rules, a dealer in New Zealand went out of business and a British broker said it was insolvent. FXCM Inc. (FXCM:US), which handled a record $1.4 trillion of trades by individuals last quarter, said clients owe $225 million on their accounts after the Swiss National Bank’s decision to abandon the franc’s cap against the euro roiled markets worldwide. Global Brokers NZ Ltd. said losses from the franc’s surge are forcing it to shut down. Alpari (UK) Ltd. said it “entered into ... (full story)

Chasing The Dream...
  • #5,832
  • Jan 16, 2015 4:44am Jan 16, 2015 4:44am
Quoting MoreYummy
{quote} Or regulator can give them special in this indeed special case.

That is not going to happen.
A contrarian; I always disagree.
  • #5,833
  • Jan 16, 2015 4:47am Jan 16, 2015 4:47am
Quoting goldfinch
{quote} Correct, they have to find 225 Million by 0900 NY time. They either issue share capital, find an investor, sell the business or close it down at 0901 EST.
That's just 3 Hours from now?!?
Forex is a losers game.
  • #5,834
  • Jan 16, 2015 4:48am Jan 16, 2015 4:48am
Quoting goldfinch
{quote} That is not going to happen.
I know its unlikely, however it is in the probability list.
I see Oanda says all negative balance are cleared, wondering how they do it. Are they market maker?
  • #5,835
  • Jan 16, 2015 4:55am Jan 16, 2015 4:55am
Quoting MoreYummy
{quote} I know its unlikely, however it is in the probability list. I see Oanda says all negative balance are cleared, wondering how they do it. Are they market maker?

YES
Chasing The Dream...
  • #5,836
  • Jan 16, 2015 5:02am Jan 16, 2015 5:02am
Quoting MoreYummy
{quote} I know its unlikely, however it is in the probability list. I see Oanda says all negative balance are cleared, wondering how they do it. Are they market maker?
Check the link in my previous post, Oanda has an excess capital of 57 mil while a lower net capital requirement than FXCM while FXCM has only 14 mil excess capital.

Point is Oanda has a much larger buffer than FXCM or Gain capital.

Something to think about when choosing a dealer.
  • #5,837
  • Jan 16, 2015 5:10am Jan 16, 2015 5:10am
Quoting MoreYummy
{quote} Alpari is busted too? Where in the news..

  1. Top News
    Alpari UK First Major Casualty to CHF, LCG Group Facing up to $2.5 mln Losses
    By Victor Golovtchenko in Breaking News
    January 16, 2015
    http://forexmagnates.com/wp-content/...logo-64x64.jpg
    The first major casualty of the Swiss franc debacle is Alpari UK, which has just issued the folowing statement on its website: The recent move on the Swiss franc caused by the Swiss National Bank’s [...]

  2. http://forexmagnates.com/wp-content/.../IC1-64x64.jpg
    IC Markets and Darwinex Soldier Forth Despite Minimal Losses and Setbacks
    By Jeff Patterson in Brokers
    January 16, 2015

  3. http://forexmagnates.com/wp-content/...logo-64x64.jpg
    Alpari UK Confirms Insolvency Procedure, Client Funds in Segregated Accounts
    By Victor Golovtchenko in Breaking News
    January 16, 2015

Source - http://forexmagnates.com/

TSLA: 30-Dec-22 123.18 // 16-Jun-23 260.54 **111.51%**
  • #5,838
  • Jan 16, 2015 5:16am Jan 16, 2015 5:16am
Quoting Naddmer
{quote} Where do you see that? As of now Jason is still unsubscribed: {image} http://www.forexfactory.com/jason*rogers {quote}

He is back.
A contrarian; I always disagree.
  • #5,839
  • Jan 16, 2015 5:22am Jan 16, 2015 5:22am
Quoting goldfinch
{quote} He is back.

And now he isn't again, am going to take a screenshot next time....
A contrarian; I always disagree.
  • #5,840
  • Jan 16, 2015 5:37am Jan 16, 2015 5:37am
put in request for withdrawal.... Pending final approval.... meh...
Trade what you see, not what you think!
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