FXCM’s Swiss Franc Losses Prompt Call for Tougher Currency Rules

The U.S. derivatives industry’s front-line regulator wants retail currency dealers to face higher capital and risk-management standards after Swiss franc losses this year left a leading brokerage needing a $300 million rescue.

Dealers would have to hold more capital in trades with large customers and foreign affiliates under rules proposed Thursday by the industry-funded National Futures Association. The regulations, which are subject to approval by the Commodity Futures Trading Commission, aim to bolster the resources of U.S.-based currency dealers when they face overseas risks.