While many other banks and corporate entities are reeling from the SNB-induced volatility of the CHF, JPMorgan Chase (NYSE:JPM) appears to have earned a nice profit of $250-300 million.
As the results of this month’s Swiss turmoil shows, the FX realm is always a zero sum game with clearly defined winners and losers. While many retail FX brokers bore the brunt of massive bouts of CHF volatility, large institutional banks such as Citigroup Inc., Deutsche Bank AG, and Barclays Plc suffered roughly $400 million in cumulative trading losses.
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According to a recent Bloomberg report, JPMorgan FX traders managed to earn a staggering $250-300 million on the day of the SNB’s abandonment of its peg. Many others were not so lucky. Large institutional banks, retail clients and traders experienced varying levels of success and disaster as many markets went dark following massive convulsions of the EUR/CHF and USD/CHF.
Contrary to others, JPMorgan told its clients it would complete all orders at 1.02 francs per euro as the Swiss currency appreciated from 1.2000 francs per euro to almost 0.8500 back on January 15.