Hi everyone

Please, see below FXCM’s formal statement

Thanks

Francesc

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The U.S. Commodity and Futures Trading Commission (CFTC) recently announced final rules regarding off-exchange retail forex trading which will take effect October 18th 2010, and FXCM would like to address some questions concerning the new rules.

FXCM has reviewed the new rules and has already been in correspondence with both the CFTC and the NFA in order to obtain interpretive guidance on some of the provisions. Our goal is to provide our clients and the forex community with clear and correct information as to how accounts with FXCM LLC will be impacted. At present, we are still awaiting clarification regarding a particular provision of the Dodd-Frank financial reform statute enacted on July 21, 2010 and the impact it could have on certain accounts held at overseas affiliates.

However, below is the information we can share.

1. Leverage will be reduced as of October 18, 2010

Starting October 18, 2010, the maximum leverage available with FXCM LLC for trading will be 50:1 for major currency pairs and 20:1 for non-major currency pairs.

We believe that the reduction in leverage is a reasonable compromise from the initial CFTC proposal of 10:1 leverage. FXCM does believe lower leverage will be to the benefit of traders as higher leverage can often times result in a few losing trades offsetting many winning trades. FXCM has already implemented 50:1 as the default margin setting on FXCM LLC standard accounts, although traders still have the option to change margin levels upon request to 100:1 leverage with FXCM LLC. As of Oct 18th 2010, FXCM will comply with the new maximum leverage requirements.

Please note: The change in maximum leverage allowed only pertains to accounts held with the FXCM LLC (U.S.) entity.

2. As of October 18, 2010 all referring brokers introducing business to registered FCMs or Retail Foreign Exchange Dealers will be required to formally register with the CFTC as introducing brokers and become NFA members.

In anticipation of this rule, FXCM has already initiated procedures to be in compliance as of October 18th. At present, all Introducing Brokers to FXCM LLC are either registered with the CFTC as IBs or pending registration.

FXCM will continue to follow up with the CFTC and NFA regarding developments related to the implementation of the CFTC’s new rules and provide you with advance notice of future changes.

If you have any additional questions, please do not hesitate to contact FXCM client services staff 24 hours a day.

Press Contact:

Jaclyn Sales
International Public Relations Manager
646-432-2463
jsalesATfxcm.com
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