The first major casualty of the Swiss franc debacle is Alpari UK, which has just issued the following statement on its website:
The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.
Any client funds should remain unaffected as the brokerage prepares to go out of business.
FBS CopyTrade Launches a New Card Scanning Feature!Go to article >>
After the news overnight about New Zealand regulated brokerage Excel Capital going under, this is the first major brokerage to announce insolvency, the Swiss franc gained as much as 35% against the euro yesterday after a massive hit across major brokerages caused substantial losses to a number of brokerages.
FXCM is facing $225 million in losses on its books, while London Capital Group just issued a statement on the financial impact on the company. The exposure of LCG Capital is dependent on the ability of the firm to recover client debts, but in total it will not exceed £1.7 million.