FXCM to take over CitiFX Pro forex margin accounts
According to an 8K filing, FXCM has agreed to assume the vast majority of margin forex accounts of CitiFX Pro. The accounts traded over $30 billion on average a month during 2014.
As of the close on June 25, CitiFX Pro accounts will be transferred to FXCM platforms. There is also talk that CitiFX Pro's Singaporean business will be transferred to Saxo Bank.
Citi has been rumored to be exiting the retail forex industry as regulators crack down on everything. Earlier this year, Finance Magnates reported:
It is understood that the majority of the clients of CitiFX Pro are institutional investors, with a collective deposits pool of over $50 million. As the broker relies heavily on liquidity from the bank's own liquidity providing unit, it seems the tightened conditions have pushed the management to put it on the market.
It's impressive that FXCM was able to finance the move after the hit they took on the SNB and the extortionate interest rates they're paying on bailout loans. I suspect they wouldn't be doing it unless they were getting a sweetheart deal.
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