By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. John Maynard Keynes, The Economic Consequences of the Peace As we first reported last night, FXCM was among the first of many retail FX brokers and the largest to see its clients suffer massive losses from yesterday's Swiss Franc surge following the SNB decision to unleash market forces.

There are now at least 4 retail FX brokers FXCM, Excel Markets, OANDA, and Alpari who have announced "issues" but FXCM, being among the largest and publicly traded is the most transparent example of wjust what can go wrong when average joes are allowed FXCM is now stuck chasing clients for money they do not and will never have..

As Credit Suisse notes, time is running out as regulators "tend to be impatient once capital requirements are breached. 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. Retail client funds continue to be segregated in accordance with FCA rules. This is what Alpari's CEO, James Hughes, who dubbed the SNB move as "horribly irresponsible", for obvious reasons now, said:. For years central banks have tried to avoid days like today by being transparent and making moves like this over time while drip feeding their intentions to the markets.

The SNB have shown themselves to be amateurs today and there is many people that will suffer considerably as a result. As a result of these debit balances, the company may be in breach of some regulatory capital requirements. We are actively discussing alternatives to return our capital to levels prior to today's events and discussing the matter with our regulators. And Excel Markets is done as ForexLive's Adam Button explains Forex broker Excel Markets calls it quits on SNB shocker.

Both our primary and backup liquidity providers became unresponsive or illiquid for hours after the event. The majority of clients in a franc position were on the losing side and sustained losses amounting to far greater than their account equity.

When a client cannot cover their losses it is passed onto us. NEW POSITIONS CANNOT BE OPENED AS OF THIS TIME. Global Brokers NZ Ltd. Losses incurred on trades that could not be exited due to illiquidity were losses incurred directly with the liquidity provider and we do not have the ability to reimburse those. Please note the interbank market for francs was illiquid for hours after the event and no traders with an open franc position were able to close it for a significant period of time, at any broker.

News of the impact of this event on companies and traders is just beginning to come to light. As Directors and Shareholders we would like to offer our sincerest apologies for this devastating turn of events, and to thank you for being such a supportive group. We ask that you place withdrawal requests for your account balance at your earliest convenience and allow for minor delays as our team begins to experience higher than usual service volumes. Canadian firm OANDA says suffered loss on Swiss Franc move Very important is the fact that even a central bank could not hold back reality forever.

Guys like Ghordius kept saying, "their business, nothing to see here". But this is wrong.

Moves by central banks affect us all. The SNB saved Swiss industry for a few years, but it was through fantasy.

And yet, everyone is shocked when the fantasy ends. Martin Armstrong has his ups and downs, but one point he makes is correct. It is all about confidence. Now that a central bank openly failed and Swiss business will be flogged, confidence in the whole fantasy of CB omnipotence is shaken.

Therefore, rest assured that the SNB will be horribly criticized. The reason will not be their decisions. Who'da thunk the Swiss would have laid the Black Swan Egg. Now we wait to see if it hatches. WE NEED HELP AND NOBODOY IS DOING ANYTHING!!!

One has to wonder if deviousness doesn't make the mind dull as it cannot then function with clarity under pressure How many thousands of mangled muppets are lining the curbs of our streets and highways?

Gambling debts which these brokers fall under in the UK are unenforcable so good fucking luck getting any money from UK "clients". They allowed leveraged bets, and when the SNB did something unexpected an act of fiscal sanity in the face of world-wide Keynesian idiocy , they all lost their fucking shirts. Vultures are already flying around FXCM, Alpari and the rest.

IG Markets, Jeffreys, Tickmill. This industry will face huge consolidation over the coming months. LeapRate has learned from industry sources that leading UK spreadbetting broker IG Group Holdings plc LON: Essentially, IG is looking to acquire the client list of brokers which are unable to meet their regulatory capital requirements.

The first official FCA regulated broker to declare itself insolvent was Alpari UK. One thing is for sure, these brokers will gain a lot of market share over the coming weeks as a lot of the dinosaurs like Alpari, FXCM, Excel, etc are becoming extinct.

Anyone else think this is just the first shot across the bow? Or are many of you thinking this is the big deal, and it will cause the problems?

I'm thinking it is just the first domino, some people get taken to the cleaners, and then when the dust settles Ok, I have decided as a longtime member of the fight club I am now throwing my hat into the ring for president of MerKa. My platform is simple. To everything that is a concern i say "fvk u we will bomb ya. Fvk you we will bomb ya. Some ole granny concerned about social security? Too many fat ugly dumb fvks in the line at walmart..

Let me get this straight.. Next thing you are going to tell me is the news on teevee is lies? I just dont think I could handle that red pill. The plus side is that america is the new rome, and you live there. If you have a beef about ownership, why bother with that? Notice in columbus claimed the us. First dibs and all that. Look around, it aint so bad.

George bush said, the constitution was just a piece of paper, I did choke on that one, but I already knew the score. Sorry I started this above, but last night zero h. MDB is even better after watching jim cramer in a meltdown: Same as the crisis Haven't you figured that out yet dipshit?

They gave you Affordable Health Care, they're working on fixing it all, baby, fret not! The hatch is a Corzine as " Retail client funds continue to be segregated in accordance with FCA rules. There's fucking no way that traders should have to take losses like this just because some fucking moron at the SNB decides to abandon their comittments. What the hell is this world coming to!?? It's fucking not fair.

They don't have to do shit my friend. So the SNB elephant just squished a million fleas when it brushed up against a tree. In the end if your account has Why aren't they in the news? Thank you MBD for brining a smile to my face more times than I can count. Here's our Cookie Policy. How to report offensive comments.

Home Contributors Newsletter Donate More Store ZH-TShirt Glossary Archive Manifesto RSS. CNN's Jim Acosta Throws Dramatic Tantrum Over Sean Spicer's Silent Press Briefing by ZeroPointNow - Jun 19, Inflation is no longer in stealth mode by GoldCore - Jun 20, 5: Jan 16, 9: UK-based Alpari From Alpari's statement: Brokerage says client enquiries, withdrawals and deposits are being handled as normal, according to a statement on its website:.

In the wake of unprecedented market events this morning, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its year legacy of transparency, integrity and fairness to our clients.

Swiss franc shock shuts some FX brokers; regulators move in | Reuters

OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough. Client inquiries are being handled normally and those making withdrawals and deposits are able to do so as normal.

OANDA is proud of its strong reputation for fairness and integrity.

We thank our customers for their continued loyalty and welcome new traders who want to experience outstanding service and execution. Credit Suisse New Zealand Swiss Franc Volatility Central Banks Transparency Swiss National Bank. Printer-friendly version Jan 16, 9: Comment viewing options Flat list - collapsed Flat list - expanded Threaded list - collapsed Threaded list - expanded. Date - newest first Date - oldest first.

Select your preferred way to display the comments and click "Save settings" to activate your changes. HardlyZero Jan 16, 9: Haus-Targaryen HardlyZero Jan 16, 9: Rubicon Haus-Targaryen Jan 16, 9: Tao 4 the Show Rubicon Jan 16, 9: I made two points when they pegged: Their industry really needed it to avoid devastation by money coming in driving the CHF up.

There would be a big price to pay Very important is the fact that even a central bank could not hold back reality forever. When you live by the sword, you die by the sword. Nothing to see here That chart is showing a Green Eggs and Ham train-into-the-boat formation Anyone think there might be some leverage behind an FX trading house?

This move by the SNB is how the owners of the Central Banks take out the competition. PartysOver eclectic syncretist Jan 16, Liberal surfsup Jan 16, I'm with you, MDB! We need more democrats in control! TRADE FOREX LIKE A PRO! How many times have I heard that ad being harped over CNBC Europe. BigJim fockewulf Jan 16, Then the regulators just suspend the accounting rules.

DetectiveStern BigJim Jan 16, 1: Four chan DetectiveStern Jan 16, 1: Some people forgot the FOREX trading rules. And the formula is repeated. The real amatuer here is Hughes at Alpari.

Screw them, and the horse they rode in on. Why would you say that Tickmill and IG Markets would be interested in that shit called Alpari? No risk no reward asshat. Leave the taxpayer alone or I will be more than happy to take your motherfucking head. MDB's satirical intent flew right over your head, didn't it? SumTing Wong weburke Jan 16, Glad to hold arable farmland, weapons, a skill set, and some gold and silver.

Now, you damn well better give generously to my campaign. D Jan 16, D weburke Jan 16, Richard Head PartysOver Jan 16, You gotta be a smarter tick..

USD CHF | US Dollar Swiss Franc - isycihe.web.fc2.com

It's just the way it goes. SWRichmond cnmcdee Jan 16, The purpose of the little guy is to be looted. Element cnmcdee Jan 16, Ghordius cnmcdee Jan 16, Other People's Money oh, that means mine and that of the other people reading here. Antifaschistische Ghordius Jan 16, Ghordius Antifaschistische Jan 16, Create new account Request new password. To prevent automated spam submissions leave this field empty.

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Surge of Swiss Franc Triggers Hundreds of Millions in Losses - WSJ

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