FXCM raises margin requirements, sees volatility

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Retail currency broker FXCM said that it will raise margin requirements globally on forex instruments, as well as gold in its overseas jurisdictions.

The decision, which increases the amount of collateral necessary to keep open positions, went into effect Wednesday. The firm said it saw a high level of uncertainty in the currency markets that could destabilize markets throughout 2015.

FXCM cited upcoming European Central Bank decision on Thursday and the Greek Election on Sunday as events that could cause "significant volatility."

The move comes less than a week after the company received a $300 million emergency loan from Leucadia National to help it meet its regulatory-capital requirements. FXCM endured more than $200 million in losses after the Swiss National Bank removed t he cap on the Swiss franc.

"FXCM would like to reiterate that trading on FXCM's systems continues in the normal course of business," said Drew Niv, CEO of FXCM.

"It is important to stress that FXCM is not insolvent, has not filed for any form of bankruptcy and is in compliance with all regulatory capital requirements in the jurisdictions in which it operates," he added.

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