UPDATE 2-Market gives thumbs down to FXCM after rescue deal

Tue Jan 20, 2015 1:10pm EST
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* FXCM shares fall 87 percent as rescue loan announced

* 40 percent jump in Swiss franc last week hurt short sellers

* Saxo Bank imposes higher margin requirements on clients (Updates with analyst quote, volume details)

By Patrick Graham and Gertrude Chavez-Dreyfuss

LONDON/NEW YORK Jan 20 (Reuters) - Shares in retail currency broker FXCM lost two-thirds of their value on Tuesday as the company laid out details of a rescue loan after $200 million of losses on last week's shock removal of the cap on the Swiss franc.

The U.S. firm is among the biggest online brokers that have prospered over the past decade from a rise in small-time currency speculation, often by helping individuals to leverage small sums into large bets.

FXCM agreed to an emergency loan with Leucadia National Corp last Friday, and laid out more details, including maximum annual funding charges of 17 percent, in a statement overnight on Monday after European and U.S. markets closed.

"It was a survival situation for FXCM. They did what they had to do," said Rich Repetto, financial services analyst at Sandler O'Neill & Partners LP in New York.

"Will they be able to pay back the loan? It would depend on a lot of things such as the recovery of customer losses, the sale of assets, things like that."   Continued...