Banks Face Swissie Music - Citi Lost $150 Mln - Bloomberg
- Leading banks have been victims of the recent currency markets crisis according to Bloomberg. Reports suggest that Citi suffered a $150 million loss, with Deutsche and Barclays also in the limelight.
One of the world's largest Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term dealers, Citigroup, is believed to have suffered significant losses on the back of the Swiss central banks move to tamper with its affairs. Bloomberg reported that Citi lost over $150 million. The US-based bank was accompanied by Deutsche (DB) and Barclays, people familiar with the matter said. The Swissie dilemma has had detrimental effects on the derivatives broking sector with London firm, Alpari UK calling it quits.
Banks have kept below the radar when discussing their CHF exposure. The said bank's losses are believed to be correlated to losses reported by retail aggregators who use banks for Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and prime brokerage services. Listed forex broker, FXCM, reported losses of $225 million but has since reported a bail-out package.
Both Barclays and DB are believed to have lost considerable amounts but less than $100 million and $150 million reported respectively.
Swiss banks are yet to report of their exposure to the market, however discussions with senior traders reveal that market makers on the CHF came out strong, with the majority of traders holding long positions.
Institutional traders and buyside members have seen an influx in banks using last look practises to overpower their clients. One trader who commented on the basis of anonymity said to Forex Magnates: "Quite simply Banks are having the biggest last look ever, typical of the market today, they enter a risk market and when it goes against them they fail to honour the trades."
One of the world's largest Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term dealers, Citigroup, is believed to have suffered significant losses on the back of the Swiss central banks move to tamper with its affairs. Bloomberg reported that Citi lost over $150 million. The US-based bank was accompanied by Deutsche (DB) and Barclays, people familiar with the matter said. The Swissie dilemma has had detrimental effects on the derivatives broking sector with London firm, Alpari UK calling it quits.
Banks have kept below the radar when discussing their CHF exposure. The said bank's losses are believed to be correlated to losses reported by retail aggregators who use banks for Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and prime brokerage services. Listed forex broker, FXCM, reported losses of $225 million but has since reported a bail-out package.
Both Barclays and DB are believed to have lost considerable amounts but less than $100 million and $150 million reported respectively.
Swiss banks are yet to report of their exposure to the market, however discussions with senior traders reveal that market makers on the CHF came out strong, with the majority of traders holding long positions.
Institutional traders and buyside members have seen an influx in banks using last look practises to overpower their clients. One trader who commented on the basis of anonymity said to Forex Magnates: "Quite simply Banks are having the biggest last look ever, typical of the market today, they enter a risk market and when it goes against them they fail to honour the trades."