Financial brokerage firms in Budapest continue to show concern as Hungary Securities Co, a multi-asset brokerage firm, has become the latest victim of the SNB crisis. The country’s central bank reported that it had suspended the broker and officially taken over the operations and management of the financial markets provider.
According to the notification on the central banks’ website, the broker had irregularities that led to the fallout, with the true nature of the details not provided, the matter is believed to be with the local police.
Sources close to Forex Magnates believe that the firm offers margin FX and CFDs through the MT4 platform that is supplied by SwissQuote.
ACY Securities Supports ASIC’s Product Intervention OrderGo to article >>
The demise of a second Hungarian broker in as many weeks comes as a shock for the regulator, as the small Eastern European nation looks to maintain its financial markets industry. The central bank added details about the importance of Hungary’s financial services market in the press briefing, saying: “The capital market in Hungary in the financial system as a whole is an important component of the savings that you can get. (Translated from Hungarian).
The broker is believed to be a relatively small provider, unlike its peer BudaCash that held several million dollars worth of equity, the central bank states that it holds 0.5% market share among investment firms.
Traders who suffered in the realms of the SNB crisis welcomed news by Alpari UK’s administrators that the FSCS threshold of £50,000 will be acknowledged. In the case of Hungary Securities, the central bank has yet to provide details on the amount of losses clients are facing.