FXCM has no idea how the FX market is structured.
Here's FXCM chief executive officer Drew Niv, quoted in Euromoney:
believes much of the chaos and market breakdown could have been avoided, had more platforms used circuit breakers.
"The market could have been functional if circuit breakers had existed at every level," he says. "This would have allowed for the market to assess the move and the new rate."
Mr. Niv, the FX market is not exchange-traded, any one can trade it, anywhere, any time. In an OTC market like FX there can be no enforcement of a circuit breaker, and certainly not 'at every level'. Oh, and here's a free tip - the FX market can be volatile. Deal with it.
The full article from Euromoney is here. For anyone with even an inkling of how the Forex market is structured the comments from Mr. Niv are simply laughable. Is the whole FXCM organization as clueless as the CEO? Surely not?
I am amazed that the CEO of this firm has no idea of FX market structure. Either that or its just another in the long string of excuses and weasel-words from the firm.
Are they still chasing clients for negative balances despite their commercials saying they don't? If I wasn't so politically correct I'd call FXCM a bunch of liars.
