Alpari (UK) Ltd applied for insolvency today following the decision on Thursday by the Swiss National Bank to cease to defend the CHF1.200 level against the euro. In a statement issued on Friday, Alpari said that the move “resulted in exceptional volatility and extreme lack of liquidity.
"This [...] 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.”
After a weekend spent in urgent discussions with various parties with a view to selling the company, these efforts were ultimately unsuccessful.
Commenting on the appointment, Richard Heis, partner at KPMG and joint special administrator, said: "Following the announcement by the SNB last week, Alpari (UK) Ltd sustained substantial losses as a result of negative client balances, and was faced with no other choice but to enter into special administration. We have had a number of enquiries from interested parties in relation to the company's business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible."
He continued: "The company holds some USD98.5 million of retail client money which has been segregated and we shall be returning this to clients or making other suitable arrangements in accordance with statute and the regulatory framework at the earliest opportunity."
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