Global Brokerage Inc. (GLBR)

[Green2013]

FXCM Inc. said it would forgive about 90% of its clients who incurred negative balances earlier this month after an unexpected surge in the Swiss franc left them with steep losses.

The retail foreign-exchange brokerage said it would notify the applicable clients and adjust applicable client account statements in the next 24 to 48 hours.

The client losses, which were about $225 million, stemmed from the surprise decision of the Swiss National Bank to end its cap on the franc's exchange ratio to the euro.

The company also said it would begin talks with some of its institutional and high net worth clients and experienced traders who typically keep higher account balances. That group accounts for about 10% of clients who incurred negative balances but represents about 60% of the total balance owed.

"FXCM worked diligently to reach this decision and we are extremely appreciative of our clients for their patience and loyalty as we worked through this," Chief Executive Drew Niv said.

The broker also said the SNB announcement, extreme price movements and the resulting lack of liquidity were "exceptional and unprecedented events" that were unforeseen and beyond the control of FXCM.

FXCM accepted a $300 million rescue package from Jefferies Group LLC parent Leucadia National Corp. to cover the client losses.