The U.S. Commodity Futures Trading Commission (CFTC) issued an announcement on Monday, imposing a civil fine of $7 million on FOREX CAPITAL MARKETS LLC, its parent company FXCM Holdings and its two founding partners Dror Niv and William Ahdout, in order to solve their allegations that the company provided false and misleading information to retail foreign exchange customers.
In response to some major questions raised by Japanese investors about "FXCM's withdrawal from the US market", FXCM Group gave the following exclusive responses:
(Source: FX 168 Financial Network)
1. Is it normal to withdraw cash at present? Will this news affect the subsequent withdrawal?
FXCM: FXCM's business outside the United States will not be affected by this notice, and all customer-oriented telephone calls, account opening and closing procedures and deposits and withdrawals will not be affected in any way. With its award-winning technology, customer service and trading tools, Fuhui Group will continue to provide customers with excellent transaction execution and competitive prices.
2. Will it affect the operation of companies in other parts of FXCM, such as FXCM UK?
FXCM: As mentioned above, all our companies in other regions will devote themselves to serving their markets, and all businesses will operate normally without any impact.
3. What is the current financial situation of FXCM?
Fu Hui:
The following is a partial summary of our third quarter results.
-US GAAP's net income from continuing operations is $665,438+$400,000.
-65 cents per/kloc-0.0 million retail transactions, per/kloc-0.0 million dollars.
-The net customer value increased steadily to 725 million USD, up by 65,438+00% compared with June 30, 1965, and up by 6% compared with June 30, 1965.
-2065438+On September 30th, 2006, the cash position of consolidated operation was strong, reaching $227.6 million, and the regulatory surplus reached $90.9 million.
In addition, as we said in the press release, exiting this business will release about $52 million in capital. The proceeds from the sale of the account and the released capital will be used to further repay the loan owed by FXCM to Leucadia National Corporation.
4. Is there anything to tell users about the news that FXCM has withdrawn from the American market or shaken users' confidence in FXCM or ignited worries?
Fu Hui: Fu Hui serves this area wholeheartedly. FXCM wishes to emphasize that the settlement has no impact on the customers of FXCM's global business. FXCM and its global subsidiaries will continue to provide their overseas customers with excellent transaction execution and competitive prices through their award-winning technology, customer service and trading tools.
5. What impact does FXCM's departure from the American market have on us (individual investors)?
FXCM wishes to emphasize that the settlement has no impact on any customers of FXCM's global business. FXCM and its global subsidiaries will continue to provide their overseas customers with excellent transaction execution and competitive prices through their award-winning technology, customer service and trading tools.