Fresh questions about the massive broker
Shares of FXCM were devastated by the Swiss National Bank debacle and the lack of risk controls at the company. Shares fell 88% after a bailout and a few days of panic selling but found support around $1.30-$2.30 since.
At least until the past two days. The company announced a 1-for-10 reverse stocks split with shares at $1.29. Officials said it was to avoid falling below the NYSE de-listing threshold of $1.00.
The market took that as a sign that company executives weren't confident in the share price and began selling. Shares fell 11% yesterday and followed that with another 11% fall today to break the post-collapse low to $1.02.
FXCM daily chart
The company has also been sued by shareholders arguing that FXCM executives failed to disclose the risks associated with sudden currency market volatility.
Other forex brokers have been relatively strong since the SNB as increased daily ranges led to more trading and higher profitability.
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