Forex Magnates has learned that the regulatory body in charge of licensing brokers in the United Kingdom, the Financial Conduct Authority (FCA), is about to conduct an investigation into the state of affairs at firms that might be affected by the GBP/CHF meltdown.
The UK regulator sent some brokers a reminder of the regulated companies’ obligation to inform the FCA about any material impact of trading losses on their balance sheet. The due date for this report, as well as their estimation for the time in which they can provide a more detailed account of their exposures, according to information obtained by Forex Magnates, is Monday the 19th at 9:00 AM.
On Friday, Alpari UK issued an insolvency announcement that it has since revoked, and the matter made top headlines in the UK as the broker is a sponsor of England’s famous West Ham United football club. The FCA obviously can’t let it seem like it isn’t on top of things with such a public case and with British traders in danger.
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In one of the world’s most important forex hubs, Cyprus, the review of the business is already underway. The regulator CySEC informed all Cyprus investment firms that they have until Tuesday, January 20th to report if client funds have been compromised or whether business, liquidity or funds have been impacted.
Virtually all brokers have been releasing updates over the weekend about their reaction to the game-changing floor drop by the Swiss National Bank (SNB). While some faced losses, others made it clear that they are on the hunt for new business, either by targeting clients directly as a marketing strategy or by expressing interest in acquiring assets from failing market participants.
All of these rapid movements are tracked on this real time post.