According to a public release from cftc.gov, “The U.S. Commodity Futures Trading Commission (CFTC)…issued an order filing and simultaneously settling charges that Forex Capital Markets LLC (FXCM) failed to supervise diligently its personnel’s handling of more than 57,000 customer accounts that traded on FXCM’s forex trading platforms.”
A combination of restitution to customers and an civil monetary penalty led to an order for Forex Capital to pay a total of $14.2 million. According to the CFTC, “FXCM failed to supervise diligently the handling of customer accounts traded on the FXCM platforms by its officers, employees, and agents with respect to changes in price between order placement and execution on both market orders and margin liquidation orders.” This allegedly resulted in customers failing to gain when the prices changed in their favor, but caused them to lose when the change in prices went against them.
The CFTC release noted that the problems with supervision and the system led Forex Capital Markets “…[to benefit] by, approximately $8,261,937” from their errors.
If you are concerned about investments you’ve made with Forex Capital Markets (FXCM) or are concerned about your forex investments with another firm and would like to speak to a securities attorney, please call our Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.