Since IG Group announced earlier that it is vulnerable to up to £30 million in losses due to today’s move in the Swiss franc, industry participants have been awaiting official word from other public companies. Releasing updates to shareholders, GAIN Capital and Plus500 have both recently issued their statements. Contrasting to IG, both GAIN Capital and Plus500 stated that the CHF moves had no material effect on their business.
In its public release to shareholders, Plus500 related that it “is pleased to confirm to the market that this has had no material impact on the Company’s financial and trading position.” They added that the broker was in fact profitable on the day, which they tied to “robustness of its risk management policies and processes which effectively managed the Company’s exposure to the Swiss franc.”
FBS CopyTrade Launches a New Card Scanning Feature!Go to article >>
Over at GAIN Capital, the broker commented, “Based on its current market and credit exposure, GAIN does not expect today’s market events to have a material adverse financial impact.” It’s worth noting that GAIN Capital increased margin requirements for the CHF to 5% in September, which ultimately would have decreased their overall exposure in the currency.
Despite the comments from GAIN Capital during the trading day, the announcement was unable to propel shares higher, which closed today down over 7% to $8.32. Similarly, shares of Plus500 were lower by just over 4% to 608.15p on a weak day for online brokers.