FXCM subject of probe by British regulator FSA

FXCM subject of probe by British regulator FSA into its trade execution practices

Associated Press

NEW YORK (AP) -- FXCM Inc. is under investigation by Britain's regulatory Financial Services Authority for past trade execution practices, the foreign currency broker has acknowledged.

The investigations began in September. The FSA has not formally told FXCM whether it intends to take any action, the company said.

The New York company estimated a possible loss of no greater than $5 million resulting from the probes in a filing with the Securities and Exchange Commission Friday.

Citi analyst William Katz called the pending investigation a "watchful issue" and said it could have an impact on the company's volumes but doesn't necessarily change the overall outlook for FXCM.

Shares in the company rose 51 cents, or 5.6 percent, to $9.64 in afternoon trading. Shares have traded from $8.50 to $13.70 in the past 12 months.

FXCM reported its third-quarter results Thursday. The company's July-September profit rose 33 percent to $4.5 million, or 17 cents per share, while revenue increased 5 percent to $115 million.

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