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Excel Markets bites the dust after CHF volatility
FXStreet (London) - Excel Markets is the latest brokerage to bite the dust following yesterday’s huge moves in the CHF.
In a statement on its website the New Zealand-based brokerage stated that: "The dramatic move on the Swiss franc fuelled by the Swiss National Bank's unexpected policy reversal of capping the Swiss franc against the euro has resulted in rare volatility and illiquidity. 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.
“All open positions must be closed by 5pm New York time or they will be automatically closed at that time. New positions cannot be opened as of this time.
“All client funds are in segregated accounts and never used for LP margins. Our primary concern has always been protecting client funds and 100% of positive client equity or balance is safe and withdrawable immediately.“
The brokerage follows UK-registered Alpari which this morning announced that it would be shuttered following yesterday’s client losses.
In a statement on its website the New Zealand-based brokerage stated that: "The dramatic move on the Swiss franc fuelled by the Swiss National Bank's unexpected policy reversal of capping the Swiss franc against the euro has resulted in rare volatility and illiquidity. 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.
“All open positions must be closed by 5pm New York time or they will be automatically closed at that time. New positions cannot be opened as of this time.
“All client funds are in segregated accounts and never used for LP margins. Our primary concern has always been protecting client funds and 100% of positive client equity or balance is safe and withdrawable immediately.“
The brokerage follows UK-registered Alpari which this morning announced that it would be shuttered following yesterday’s client losses.
Author
Craig Drake
Independent Analyst
Craig Drake, Analyst, joined FXStreet in 2013, with a background in journalism and economic research. He specialises in macro and fundamental strategy, with a keen interest in monetary policy. He has a degree in law and economics.
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