We’ve reached out to some brokers to help sooth client nerves amidst all the confusion. Shares of FX brokers are down big today and people are worried.
We heard from the people at City Index, here are the comments from a spokesman.
“Obviously it’s been a very difficult day for all involved trading the CHF markets. It’s very much business as usual however for City Index and its customers. The market dislocation has had no significant negative impact on our business. Our trading platform suffered no outages despite the high market volatility and we met our obligation of best execution to all client trades. Our client management teams are available to provide support 24 hours a day to any client queries regarding today’s market events.”
My friend Ashraf Laidi over at City Index warns that the SNB has miscalculated by dropping the currency ceiling.
On the industry, here’s a good recap of some of the challenges brokers are facing today. IG Index already announced a loss of up to £30m after SNB dropped the 1.20 floor.
It’s all a reminder that events like this prove who has a well-run business and who isn’t mindful that they’re custodians of client funds, not just profit centres.
Don’t picture Warren Buffett swimming naked
