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Serge Berger On FXCM: 'There's Little You Can Do As A Broker'

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The Steady Trader Head of Investment Strategy Serge Berger told Benzinga the the full picture of the fallout from the move by the Swiss Central Bank will likely not be clear until a few weeks from now, even though some forex brokers have already gone into insolvency.

When asked if forex broker FXCM Inc (NYSE: FXCM) took on too much risk, Berger said that it might have to reconsider the way it calculates risk.

“But if you have a move like we had yesterday out of nowhere, there’s little you can do as a broker,” he said.

Berger went on to to say that global implications of the SNB move might be that more investors will be weary of central banker promises. He explained that volatility has crept back into the markets through commodities last year, then currencies and now more recently in stocks.

“In other words, the SNB move likely confirms the theme of increased volatility in markets we are likely to see at least in the first half of 2015,” he said.

FXCM shares were halted on Friday after plummeting 85 percent in pre-market trading.

Posted-In: Brokerage fxcm Serge Berger The Steady TraderAnalyst Color Forex Exclusives Markets

 

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