FXCM Drops 13 ‘High Risk’ Currency Pairs


FXCM rising from ashesRising from its ashes, earlier today the company also announced its recent upgrade of its Trade Station platform. After the platform upgrade FXCM Inc (NYSE:FXCM) announced to drop 13 “high risk” currency pairs as of Friday the 20th of February. These are majorly SEK, NOK, HKD, PLN, SGD, CZK and ILS pairs.

 

The following is the complete list of the discontinued pairs:

SEK NOK HKD PLN SGD CZK ILS
GBP/SEK NOK/JPY HKD/JPY USD/PLN SGD/JPY EUR/CZK USD/ILS
CHF/SEK CHF/NOK   EUR/PLN USD/SGD USD/CZK  
SEK/JPY            

If any trader still have any pending order to open a position with any of the discontinued pairs, these orders will be closed automatically prior to the market close of the 20th of February 2015. Those traders with open entries with the discontinued pairs will also have to close their positions at a suitable price or their positions will be automatically liquidated by the market closing level of the 20th of February 2015.

Since the Swiss Franc black swan event hit the market on the 15th of January 2015 FXCM has been going through significant internal structure and risk management changes to avoid any possible future catastrophic event as the company already lost close to $300 million  and had to into a deal with Leucadia National Corp. to avoid liquidation.

As one of the first steps the company also last week dropped offering USD/DKK and EUR/DKK pairs in response to the Danish government’s oath to maintain DKK peg against Euro. Similar decisions have been also taken by AxiTrader and Peppersone against HKD and DKK pairs earlier in February too.

These currencies were not taken randomly or chaotically. Just like in CHF these currencies carry significant risks to Forex brokers. These pairs are manipulated by the local governments in multiple ways. They either have a set floor, or ceiling, band or set pegs against its counterparts. All these in return set significant risk when the local governments decide to break away from their commitments.

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