Swiss squeeze busts West Ham sponsor
As I speculated yesterday, there was bound to be some companies that couldn’t absorb the losses from the decision by Swiss to suddenly free float their currency.
The first victim to come to the fore is Alpari, they posted a rather sombre statement on their web site: –
https://www.alpari.com/company-news/posts/2015/january/important-announcement/
The key part reads: –
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.
It’s likely there will be more. I moved to protect any cash held at weaker brokers yesterday. It’s worth getting clarity from yours or not waiting till Monday to move cash. Better safe than sorry.
Category: Football trading strategies
