2 FX Brokers Suffer "Significant Losses" After SNB Surprise, "In Breach Of Regulatory

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Updated February 6, 2015

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2 FX Brokers Suffer "Significant Losses" After SNB Surprise, "In Breach Of Regulatory

January 16th, 2015, 02:46 PM

#21 (permalink)

sharpshoota

Bodoe , Norway

Posts: 143 since Jun 2014

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trendisyourfriend

I got this email from Oanda:

Dear TrendIsYourFriend:

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).

As a very well capitalized broker, we are proud to report that it is business as usual at OANDA: client trading, deposits and withdrawals are processing normally.

OANDA is proud of its strong reputation for fairness and integrity. We thank our customers for their continued loyalty and welcome new traders who want to experience outstanding service and execution.
......................

WoW !! ....oustanding performance by Oanda. Not many brokers would have done the same.

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puma, trendisyourfriend

January 16th, 2015, 04:08 PM	#22 (permalink)
sharpshoota Bodoe , Norway Posts: 143 since Jun 2014 Thanks Given: 846 Thanks Received: 129	Leucadia to provide $300M in financing to FXCM Leucadia to provide $300M in financing to FXCM

January 16th, 2015, 05:27 PM	#23 (permalink)
quantismo Christiansburg Virginia Elite Member Experience: Advanced Platform: retired ...maybe Trading: anything with the slightest edge.. Posts: 244 since Jul 2011 Thanks Given: 340 Thanks Received: 179	Got in FXCM heavy premarket $1.55 out at $ 4.03 post market . I don't even care even if it goes back to $12 was my best equity trade ever...!!!! Quantismo I wont rack this one up as trading skill it was more like luck ....

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Big Mike, liquidcci, sharpshoota

January 16th, 2015, 06:11 PM

#24 (permalink)

Big Mike

Manta, Ecuador

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quantismo

Got in FXCM heavy premarket $1.55 out at $ 4.03 post market . I don't even care even if it goes back to $12 was my best equity trade ever...!!!!

Quantismo

I wont rack this one up as trading skill it was more like luck ....

Nicely done. I was telling myself I should do the same this morning, but I just wasn't focused enough to get it done before they halted it.

Mike

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January 16th, 2015, 06:39 PM

#25 (permalink)

tturner86

Portland, Oregon

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quantismo

Got in FXCM heavy premarket $1.55 out at $ 4.03 post market . I don't even care even if it goes back to $12 was my best equity trade ever...!!!!

Quantismo

I wont rack this one up as trading skill it was more like luck ....

The skill is pulling the trigger when you should, which you did. Good job!

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January 17th, 2015, 04:36 AM

#26 (permalink)

Fat Tails

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tturner86

The skill is pulling the trigger when you should, which you did. Good job!

Was it skill or just a gamble?

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January 17th, 2015, 04:45 AM

#27 (permalink)

jamjacson

Sydney

Posts: 13 since Oct 2014

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Fat Tails

Was it skill or just a gamble?

Its only a gamble if he lost money, so therefore its skill

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January 17th, 2015, 05:25 AM	#28 (permalink)
xiaosi Brisbane, Queensland, Australia Market Wizard Experience: Advanced Platform: JIGSAW/SIERRA CHART Broker: MacQuarie Futures/AMP Clearing/CQG Trading: HHI, HSI, FDAX Posts: 500 since Feb 2012 Thanks Given: 448 Thanks Received: 535	I cleaned out my main Interactive Brokers account yesterday AM Shanghai time just in case there was a run on the brokers...but alas IB look ok so far, a loss suffered none the less.

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January 17th, 2015, 09:52 AM

#29 (permalink)

GFIs1

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xiaosi

I cleaned out my main Interactive Brokers account yesterday AM Shanghai time just in case there was a run on the brokers...but alas IB look ok so far, a loss suffered none the less.

With a net gain of 450 mio per year upward this is no biggie:

INTERACTIVE BROKERS GROUP Bilanz GuV | Kennzahlen | Umsatz | Gewinn | finanzen.net

It might have put out some more high risk high leverage companies more - which we will know very soon.

GFIs1

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January 17th, 2015, 10:17 AM

#30 (permalink)

swinger

Raleigh NC/USA

Experience: Beginner

Platform: NinjaTrader

Trading: stocks

Posts: 33 since Oct 2014

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trendisyourfriend

I got this email from Oanda:

Dear TrendIsYourFriend:

Early on January 15, 2015, the Swiss National Bank (SNB) sent global financial markets into turmoil with a surprise move to eliminate its three-year-old cap on the franc (CHF).

In the wake of this unprecedented market event, OANDA demonstrated its ongoing commitment to doing right by its clients. Despite suffering losses and vanishing liquidity in the institutional hedging market, OANDA remained true to its 14-year legacy of transparency, integrity and fairness to our clients. OANDA did not re-quote or amend any CHF cross client trades. We even took the further step of forgiving all negative client balances that were caused when clients could not close out their positions fast enough (where permitted by regulations).

How exactly does this work? Clients suffered losses because they couldn't unwind short CHF positions due to illiquidity or being caught off guard, and Oanda is going to make them whole? Did Oanda have a net long CHF position that they never hedged that allows them to do this?

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