Long-established London-based CFD and spread betting company City Index has clarified its perspective with regard to its corporate position following yesterday’s decision by the Swiss National Bank to abandon the 1.20 floor on EUR/CHF, resulting in one of the most volatile trading days in history.
Today, the company which was recently purchased by GAIN Capital for $118 million, has issued an official statement on the situation.
City Index’s commercial statement on the matter begins by explaining that “Following yesterday’s announcement by the Swiss National Bank that it would be abandoning the cap on the Swiss franc’s value against the euro, the forex markets experienced extreme volatility.”
“It has come to our attention that a number of retail brokerages have announced that this has resulted in them experiencing acute financial pressure. Following this and queries from customers, we would like to take the opportunity to reassure our clients and confirm to the market that City Index has not suffered any material impact as a result of yesterday’s volatility and our financial position has not been affected” continued City Index’s explanation.
In conclusion, the company reassured investors that “It is very much business as usual for City Index and our global client base. Should our clients have any questions, our customer management teams are available 24 hours a day to assist.”