Feb 15 Currency broker FXCM Inc, which
was banned last week from operating in the United States, said
on Wednesday its non-U.S. monthly trading volume rose 18 percent
to an estimated $253 billion in January from December.
Volume, however, fell 17 percent from a year earlier.
The company said in a statement it excluded U.S. trading
from the estimate because it had agreed to sell its U.S.
accounts to rival Gain Capital Holdings Inc and
withdraw from the United States.
FXCM was banned last week by the U.S. Commodity Futures
Trading Commission from doing business in the United States for
betting against its customers in trades. The commission ordered
Forex Capital Markets, its parent FXCM Holdings LLC and founding
partners Dror Niv and William Ahdout to pay $7 million to settle
charges it had defrauded retail foreign exchange customers.
At the end of 2016, FXCM's U.S. retail forex accounts
totaled nearly $179 million, according to the commission's
website. The United States accounts for 18 percent of FXCM's
revenue, the company's website showed.
January customer trading volume averaged $12 billion a day,
up 18 percent from December.
The commission said last week that FXCM had an interest in a
market maker on its trading platform that consistently won the
largest share of the company's trading volume, and thus was
taking positions in opposition to FXCM's retail customers.
As an agency broker registered with the commission, FXCM was
to act merely as an intermediary between the buyer and seller in
foreign exchange transactions.
FXCM said on Monday the sale of its U.S. retail foreign
exchange business was expected to reduce consolidated revenues
by $38.8 million and increase net profit by $13.9 million for
the nine months ended Sept. 30, 2016.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Richard