On January 15, 2015 at 12,30 CET, without any notice or even a small hint that it was considering such a move, the Swiss Central Bank (SNB) has removed the minimum exchange rate of 1.20 francs per euro. As a result, trade in CHF-crosses literally disappeared, the value of the franc rose sharply, as within minutes rose by 30% and cause monstrous turmoil.
SNB reason to introduce a minimum exchange rate of the franc against the euro 3 years ago, in the summer of 2011. Was to protect its currency from excessive appreciation. Since then, this mechanism worked like a Swiss watch without once violated. Until January 15, 2015, when SNB waved "ceiling" and ajar the gates of hell forex industry.
In recent years a significant number of investors around the world bet on this "safe" exposure - hold short franc against other currencies, possibly only benefit from cheaper, without losing tyler tx any of appreciation, "supported" the commitment of the SNB to maintain the ceiling. The collapse of the ceiling had the effect of dam. Accounts of traders with short positions in francs and high leverage became negative in minutes and while their brokers execute orders, those with large CHF hedged positions could not close them to their liquidity providers - interbank trade just stopped. The franc has appreciated by 30% for minutes, then restore half of this movement and settle around parity with the euro.
Alpari UK - one of the largest Forex brokers in the world claim for bankruptcy and probably out of business. Still do not know the amount of loss. FXCM announced a $ 225 million negative customer balances currently tyler tx looking for a solution on how to deal with the problem; IG Group - a loss of 30 million;
We are glad to inform our customers that due to the strict policy of risk management, we were able to go through this "horror" unharmed. Would like to thank the teams from the departments of risk management and IT support for the professionalism and composure. Thanks to these commercial systems and links functioned perfectly; broadcast quotes, view with still and all postponed orders tyler tx were delivered correctly, resulting in losses for our customers were minimized.
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