FXCM Agrees to Pay $14 Million to Resolve CFTC ‘Slippage’ Claims

Forex Capital Markets LLC agreed to pay $14.2 million to settle U.S. regulators’ claims it failed to properly oversee handling of more than 57,000 accounts that used the New York-based firm’s foreign-exchange trading platform.

FXCM, between 2008 and 2010, deprived customers of $8.26 million in “positive price slippage,” advantageous price changes that occurred after the clients placed orders and before the transaction was executed, the Commodity Futures Trading Commission said in an administrative order filed today. The firm agreed to reimburse the damages and to pay a $6 million penalty, the CFTC said.