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Earlier today, international retail Forex broker EXNESS issued an announcement, explaining the consequences of the Swiss currency moves on the financial status of the company. Due to measures taken by the company regarding trading with all instruments featuring CHF, the business suffered a minimal impact from yesterday’s events: overall losses amounted to only 1.6% of EXNESS’s capital.
Below you can read the full statement by the Forex broker (or find it at the corporate website):
Dear clients and partners,
We would like to comment on the difficult situation that arose yesterday through an abrupt increase in the franc’s exchange rate relative to the main global currencies and its impact on indicators of EXNESS’ activity.
Due to the unstable situation on the financial market, our specialists decided in advance not to present most of our clients’ positions involving the Swiss franc to the market. The exception was open positions in clients’ ECN accounts, which were covered by external contractors as per normal.
As a result, on January 15, 2015 the sharp price movement of currency pairs with CHF did not significantly affect the company’s financial stability. At the end of the day, EXNESS’ total losses amounted to less than 1.6% of the company’s capital. We would like to clarify that these losses only affected EXNESS’ own funds – this in no way whatsoever affects clients’ funds, which are held in special accounts that are separate from the company’s funds.
However, we have decided to temporarily suspend trading currency pairs with the Swiss franc. This is due to our desire to maintain high-quality order execution and the need to minimize financial risks for our clients and the company.
In all other respects EXNESS is providing services in a normal manner and continues to honor all of its obligations in full.
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