Day two of the fallout surrounding the rampant volatility of the Swiss franc (CHF) has left brokers like FXCM and IG Group to incur substantial hits to their business – however, LMAX Exchange appears to be an oasis of calm, ensuring clients that it is “business as usual”.
Indeed, LMAX Exchange joins other brokers and providers such as GAIN Capital, Plus500 and ADS Securities who have emerged out of this CHF bedlam unscathed. On the contrary, the only alterations LMAX has made were temporarily increased margins of 10% on EUR/CHF and USD/CHF and 5% on other CHF crosses respectively.
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According to CEO David Mercer in a recent statement on the aftermath, “Thursday was a difficult day for the FX marketplace and our clients following the unprecedented volatility in the Swiss franc. Our strict risk controls and robust technology ensured that LMAX Exchange suffered no significant financial repercussions.”
“We expect business as usual for our clients on Friday with no change to our international operation in London, Hong Kong and Tokyo. The benefits of exchange style execution and limit order book transparency were clear to see after the general market dislocation created by the SNB announcement.”