Winners and Losers of the CHF Cataclysm

Friday, 16/01/2015 | 00:01 GMT by Jeff Wilkins
  • Cancel all of your meetings, lunches, phone calls and anything else you had scheduled today.
Winners and Losers of the CHF Cataclysm
Bloomberg, Thomas Jordan, President of the Swiss National Bank

Cancel all of your meetings, lunches, phone calls and anything else you had scheduled today. For the next 24 hours your job is to put together the fragmented pieces of the business impact of today's unprecedented move in CHF.

There are going to be very clear winners and very clear losers from today's events, but overall nothing positive will come of this for the collective industry as a whole. The only comparable market event in recent history was the Flash Crash of May, 2010.

The business results due to this morning's events will forever impact our industry as a whole. There have already been public filings of massive financial casualties. The unfortunate situation from this morning's events is the impact these moves had on agency brokerages, which have been deemed the "safest" risk models across the industry. The long-term impact will primarily come from regulators after assessing the situation. The short-term impact will be job casualties within some of these firms. If this isn't a wakeup call for firms to reassess their risk model and who calls the shots, then there are big problems.

Cancel all of your meetings, lunches, phone calls and anything else you had scheduled today. For the next 24 hours your job is to put together the fragmented pieces of the business impact of today's unprecedented move in CHF.

There are going to be very clear winners and very clear losers from today's events, but overall nothing positive will come of this for the collective industry as a whole. The only comparable market event in recent history was the Flash Crash of May, 2010.

The business results due to this morning's events will forever impact our industry as a whole. There have already been public filings of massive financial casualties. The unfortunate situation from this morning's events is the impact these moves had on agency brokerages, which have been deemed the "safest" risk models across the industry. The long-term impact will primarily come from regulators after assessing the situation. The short-term impact will be job casualties within some of these firms. If this isn't a wakeup call for firms to reassess their risk model and who calls the shots, then there are big problems.

About the Author: Jeff Wilkins
Jeff Wilkins
  • 13 Articles
  • 6 Followers
About the Author: Jeff Wilkins
As a recognized leader in the capital markets industry, Jeff has an extensive background in risk management and trading in every asset class. His vast experience, passion for excellence, and strong sense of commitment are why he was chosen to lead ThinkLiquidity. Jeff has built and directed global risk and trading teams around the world and has an intimate understanding of the trials and tribulations these teams have to constantly endure. Jeff is building ThinkLiquidity around one core principal; Risk management should always drive technology. As a recognized leader in the capital markets industry, Jeff has an extensive background in risk management and trading in every asset class. His vast experience, passion for excellence, and strong sense of commitment are why he was chosen to lead ThinkLiquidity. Jeff has built and directed global risk and trading teams around the world and has an intimate understanding of the trials and tribulations these teams have to constantly endure. Jeff is building ThinkLiquidity around one core principal; Risk management should always drive technology.
  • 13 Articles
  • 6 Followers

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