Foreign exchange broker Alpari UK announced Friday that it
had entered insolvency following the Swiss National Bank's (SNB) shock
decision to drop its three-year-old peg of 1.20 Swiss francs per euro.
"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," Alpari UK said in a statement.
"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."
"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," Alpari UK said in a statement.
"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."
Simon Dawson | Bloomberg | Getty Images
An employee places a bundle of twenty Swiss
franc banknotes inside a Travelex store, operated by Travelex Holdings
Ltd., in London.
Read MoreStunned: Swiss banks, watchmakers hit hard
The company said that, as a result, it had entered into insolvency, adding
that retail client funds would continue to be segregated in accordance with FCA rules.
The SNB stunned markets on Thursday, when it scrapped its three-year-old peg of 1.20 Swiss francs per euro. Shortly after the central bank's announcement, the Swiss franc soared by around 30 percent in value against the euro, and by 25 percent against the dollar.
Currency trading platform Forex.com suspended trading in Swiss francs after the SNB's announcement. On Friday, the company said it hoped to resume trading in the currency soon.
A number of spread betters, including Forex.com and ETX Capital, issued statements Friday saying that the previous day's extreme currency movements had not affected their financial positions.
The company said that, as a result, it had entered into insolvency, adding
that retail client funds would continue to be segregated in accordance with FCA rules.
The SNB stunned markets on Thursday, when it scrapped its three-year-old peg of 1.20 Swiss francs per euro. Shortly after the central bank's announcement, the Swiss franc soared by around 30 percent in value against the euro, and by 25 percent against the dollar.
Currency trading platform Forex.com suspended trading in Swiss francs after the SNB's announcement. On Friday, the company said it hoped to resume trading in the currency soon.
A number of spread betters, including Forex.com and ETX Capital, issued statements Friday saying that the previous day's extreme currency movements had not affected their financial positions.
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