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FXCM to drop currencies with volatility risk

A trader at FXCM in Japan.
Michael Caronna | Reuters
A trader at FXCM in Japan.

FXCM, the foreign currency broker hammered by the Swiss National Bank's decision to remove its cap on the franc's value last month, will stop trading selected currencies this week to protect against potential volatility caused by future central bank moves.

The broker will discontinue 13 currency pairs on Friday, an FXCM spokeswoman confirmed to CNBC. It will drop trading in pairs that include the Swedish krona, Singapore dollar and Norwegian krone, among others currencies, according to an email sent to clients on Feb. 4.

The broker is dropping currencies that carry geopolitical risk and are not vital to trading volume and revenue, FXCM CEO Drew Niv previously said in an interview with ForexMagnates.com.

Read MoreFXCM raises margin requirements, sees volatility

FXCM took more than $200 million in losses after the Swiss franc shot higher on the central bank's move last month, CNBC reported previously. It received a $300 million emergency loan from Leucadia National.

U.S.-listed shares in FXCM were down nearly one percent on Tuesday.

Read MoreFXCM to 'forgive' most clients for negative balances on Swiss franc move