*FXCM: NEGATIVE EQUITY BALANCES OWED TO FXCM ABOUT $225M
*FXCM: MAY BE IN BREACH OF SOME REGULATORY CAPITAL REQUIREMENTS
*FXCM DISCUSSING ALTERNATIVES TO RETURN CAPITAL TO PRIOR LEVELS
FXCM an online provider of forex trading and related services worldwide, announced today due to unprecedented in EUR/CHF pair after the Swiss National Bank announcement this morning, clients experienced significant losses, generated negative equity balances owed to FXCM of approximately $225 million.
As a result of these debit balances, the company may be in breach of some regulatory capital requirements.
Trading in the shares was delayed by the New York Stock Exchange pending news.
"Absent an overnight capital raise FXCM will not be able to conduct business," said Credit Suisse in a client note.
Citi specifically noted that it expects FXCM’s share price to first bounce, before noting that all positive benefits are destined for Leucadia. Specifically, Citi argues that any sale of non-core assets will go first to Leucadia as part of its emergency bailout on January 16.
Citi failed to address rumors in the market of an ultimate buyout, specifically, last week it was rumored that Charles Schwab Corp would offer .25 per share for the troubled broker.