Swiss Franc volatility wreaks havoc on brokerages, FXCM's future in question

Industries Associated Press

The future of FXCM — a major U.S. foreign-exchange broker — is on the line after Switzerland stunned global markets by abandoning a policy that pegged its currency to the euro.

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The Swiss National Bank on Thursday ditching its practice of capping the rise of its currency. The surprise decision sent the Swiss Franc — one of the world's most traded currencies — surging.

It's broadsided currency traders holding sizeable currencies against the Swiss franc. At least two brokerage firms announced plans to go out of business.

Shares of New York-based broker FXCM Inc. plunged almost 90 percent before the opening bell Friday after it said it may be in breach of some regulatory capital requirements following significant losses.

Trading in the company's shares remained on hold midday Friday on pending news.