Risk management has been a major item on the agenda of many retail FX firms this year, driven to the forefront of the agenda by the Swiss National Bank’s removal of the 1.20 peg on the EURCHF currency pair in January, an event which has become known within the industry as ‘Black Thursday.’
Many analysts have considered over the last few months that market volatility could well increase and there may be more events of magnitude which brokerages should prepare for.
EXNESS has maintained a shrewd risk management model through the volatile periods of the year, ranging from ruble liquidity shortages during the latter part of 2014, through to sustaining good capitalization post January 15.
The company yesterday announced that it participated in a forum organised by the European Institute of Management and Finance’s (EIMF) and was held in Limassol, Cyprus on May 20, which brought together an international audience to discuss the challenges and opportunities faced by risk management professionals in today’s global market environment.
LeapRate today spoke to George Tsaparillas, Director of Global Strategy and Business Development at EXNESS in order to gain the company’s perspective on its concentration on risk management.
“Heightened volatility, as evidenced by January’s SNB movements, presents both challenges and opportunities for risk management professionals” explained Mr. Tsaparillas.
He continued “At present, the market is far too opaque, with traders often having no visibility of the financial performance of their broker and frequently operating with the elevated risk of managing different liquidity pools.”
“As one of the most transparent retail forex brokers in the industry, we believe clients deserve more and EXNESS is proud to advocate the importance of greater risk management systems as a part of a wider governance structure to ensure the profitability of corporations. Pinpointing a comprehensive system of monitoring compliance risk will lead to greater clarity for the industry as a whole and significantly benefit all market participants” concluded Mr. Tsaparillas.