It can take a while for the full effects of bad news to show.
Two-and-a-half weeks after the Swiss National Bank surprised the foreign exchange markets with the removal of its floor on the exchange rate between the euro and the franc, foreign exchange brokers are still feeling the pain.
On Monday, FX broker LQD Markets applied to the Financial Conduct Authority, the U.K.’s markets watchdog, to be placed into administration, in order to protect its clients and creditors.
The company said it experienced trading difficulties following the decision by the SNB to remove the informal floor on the exchange rate between the Swiss franc and euro which prompted volatility across foreign exchange markets.
This brokerage is far from alone, with the highest-profile victim so far being FXCM Inc.FXCM -3.64%, the biggest retail foreign-exchange broker in Asia and the U.S, while U.K. broker Alpari also filed for insolvency.
Danish regulators have also asked for Saxo Bank to hand over details of how it handled Swiss franc trades shortly after the SNB’s decision after the broker came under fire from clients for altering prices on trades hours after clients thought they had closed. Saxo’s said it’s prepared to face lawsuits over the issue.
Read more Click here / www.trade4x.net
Two-and-a-half weeks after the Swiss National Bank surprised the foreign exchange markets with the removal of its floor on the exchange rate between the euro and the franc, foreign exchange brokers are still feeling the pain.
On Monday, FX broker LQD Markets applied to the Financial Conduct Authority, the U.K.’s markets watchdog, to be placed into administration, in order to protect its clients and creditors.
The company said it experienced trading difficulties following the decision by the SNB to remove the informal floor on the exchange rate between the Swiss franc and euro which prompted volatility across foreign exchange markets.
This brokerage is far from alone, with the highest-profile victim so far being FXCM Inc.FXCM -3.64%, the biggest retail foreign-exchange broker in Asia and the U.S, while U.K. broker Alpari also filed for insolvency.
Danish regulators have also asked for Saxo Bank to hand over details of how it handled Swiss franc trades shortly after the SNB’s decision after the broker came under fire from clients for altering prices on trades hours after clients thought they had closed. Saxo’s said it’s prepared to face lawsuits over the issue.
Read more Click here / www.trade4x.net
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