FXCM Reports $225 Million Hit; Fears for Retail Sector After SNB Move – Profit & Loss (subscription) The unprecedented move in CHF that followed the Swiss National Bank’s decision to abandon the euro peg has raised fears of a series of bankruptcies in the hedge fund and small institutional community, as well as pressured several retail brokers. FXCM has stated that its clients suffered “heavy losses” in the move and that the firm was owed $225 million and “could be” in breach of some regulatory capital requirements.
Alpari (UK) Enters Insolvency – Profit & Loss (subscription)
Alpari (UK) says it has entered insolvency due to client losses on the Swiss franc move yesterday.
SNB Move Fuels Speculation Danes May Be Next as Krone Gains – Bloomberg
The decision by the Swiss National Bank to abandon its euro cap is fueling speculation the Danish central bank may come under pressure to follow suit, according to Nordea Bank.
SNB’s Surprising Move Sends Shockwaves Through Markets – Profit & Loss (subscription)
The Swiss National Bank sent currency markets into a panic on Thursday when it took a necessary – if sudden – decision to scrap its three-year old EUR/CHF floor at 1.2000. Following the removal of the floor, EUR/CHF dropped sharply to an official low of 0.8500, although dealers report trades down the 0.8000 level.
Franc Fallout Boosts Dollar on Growing Demand for Haven – Bloomberg
The dollar traded 0.6% from an 11-year high against the euro after the Swiss National Bank roiled financial markets by unexpectedly scrapping the franc’s cap, spurring demand for safer investments.
Swiss Bankers Are Accelerating the Euro’s Slide – Bloomberg
The euro is shaping up as the biggest casualty of Switzerland’s decision to scrap its currency cap. While setting a record low versus the franc, the euro also plunged 3.5% against a basket of 10 developed-nation peers, the most since its 1999 debut.
Currency Markets Brace Themselves for Week of Turbulence – FX Week (subscription)
Currency traders are bracing themselves for turbulent market moves ahead of the European Central Bank’s first rate-setting meeting of the year and elections in Greece, both scheduled to take place next week, while the fallout from the Swiss National Bank’s decision to remove its EUR/CHF currency floor wreaked havoc in markets.
FXPA News: Join by Feb 1 to Qualify for Time-Limited Membership Category
The special founding member category of the Foreign Exchange Professionals Association (FXPA) will close on February 1. Join today to be part of the first wave of founding members that enjoy the distinct benefits that this class offers. FXPA recently crossed the critical threshold of 15 members, triggering elections for the first permanent Board of Directors and Officers. FXPA’s Board will include 50% representation by Founding Members that join prior to the February 1 deadline.