UPDATE 1-Market gives thumbs down to FXCM after rescue deal
* FXCM shares fall 70 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 after New York opens; adds background, details on more changes by rival Saxo Bank)
By Patrick Graham
LONDON, 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 one of the biggest of the online brokers that have prospered over the past decade from a rise in small-time currency speculation, often by helping individuals to leverage relatively minimal sums into large currency bets.
FXCM agreed an emergency loan with Leucadia National Corp on Friday, and laid out more details, including maximum funding charges of 17 percent per annum, in a statement overnight on Monday after European and U.S. markets closed.
Frankfurt-listed shares in the company fell 70 percent in value to 1.456 euros per share, according to Reuters data.
In New York, where the stock has not traded since late last week due to a suspension of the stock and U.S. market holiday, prices fell 87 percent in heavy volume. Continued...