As the dust settles from Thursday’s surprise decision to unpeg the Swiss franc from the euro — which blasted the franc up higher — we’re beginning to see the damage that was done.
According to the Wall Street Journal, Detusche Bank lost $US150 million on the move. The Journal also reported that Barclays lost tens of millions.
It was expected that smaller businesses would feel the pain of this sudden, volatile shift. Business Insider’s Mike Bird reported that UK-based FX broker Alpari just announced that is has entered insolvency.
The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency.
We’ll keep you updated if we hear of more carnage.
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