FXCM Up 30% Amid Upgrade, Possible Short Squeze

FXCM Inc FXCM moved nearly 40 percent higher Wednesday amid an upgrade from Keefe, Bruyette & Woods which indicated that its the financing deal with Leucadia would enable it to resume normal operations.

Following the recent move in the Swiss franc and the firm’s subsequent capital deficiency, multiple firms downgraded the stock last week, including JP Morgan, Credit Suisse and Citigroup.

Another possible reason for the stock's surge is a short squeeze. The percentage of short interest on the stock's float was 15.6 percent as of the last reporting period.

FXCM gave back some of its earlier gains and recently traded at $2.15, up 34.3 percent.