Shares of Forex Capital Markets (FXCM) cratered 50% at the open of the NYSE trading session. On Monday, FXCM shares closed at $6.55, on Tuesday morning, the stock opened at $3.60.
Yesterday, the
CFTC levied a $7 million monetary penalty against FXCM for taking positions against their retail clients.
FXCM falsely marketed itself as a “No Dealing Desk” currency trading venue while secretly controlling a “market maker” on their trading platform that was taking the other side of trades made by retail traders.
FXCM profited to the tune of $77 million over a 4-year period due to their conceals market making activity. The CFTC also banned the brokerage from ever registering in the United States, prompting FXCM to withdraw from the American retail currency trading market. The embattled brokerage announced yesterday the sale of its American client database to Gain Capital Holdings.
At press time, shares of FXCM are trading at $3.47, about 17 cents from the day’s lows at $3.30.
