Swiss Shock Spurs Firms to Change Rules to Weather Next FX Swing
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Financial firms stung by last week’s surge in the Swiss franc are changing client rules and trading practices to weather future currency swings.
FXCM Inc., the New York-based retail broker, said Wednesday it’s increasing margin requirements for clients who trade currencies and gold after customers’ losses forced it to seek a $300 million lifeline. CME Group Inc., owner of the Chicago Mercantile Exchange, is altering how it handles volatility in emergencies after it was buffeted by trading halts last week.