FXCM Hobbling Prompts Regulator to Consider Leverage Rule Change
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The U.S. derivatives industry’s front-line regulator may tighten oversight for retail foreign-exchange trades after one of the largest brokerages required a $300 million lifeline to meet capital requirements.
The National Futures Association is reviewing leverage and other rules for retail currency trading, according to Karen Wuertz, the group’s spokeswoman. The industry-funded regulator began considering changes after FXCM Inc. needed cash from Leucadia National Corp. to survive a shortfall amid client losses when the Swiss franc surged against the euro last week.