Japanese retail forex broker Monex Group, Inc. (TYO:8698) has released a statement indicating that it experienced no material negative financial impact from last week’s Swiss Franc volatility.
Monex did experience some clients with negative equity balances, but those totaled just 0.2% of the firm’s assets, or about ¥160 million (USD $1.4 million) of negative balances.
The Monex Group official statement follows, and can also be seen here.
Announcement of the Financial Impact on Consolidated Performance from a Volatile Swiss Franc Market
TOKYO, January 19, 2015- Monex Group, Inc. (“the Company”: TSE 8698, Oki Matsumoto, Representative Director, Chairman and CEO) announces that FX companies under Monex Group, Inc. (IBFX, Inc., TradeStation Australia Pty Ltd. and Monex, Inc.) have recognized client negative balance on FX accounts of the customers due to a volatile Swiss Franc market caused by the Swiss National Bank’s decision announced on January 15, 2015 to abolish its policy capping the Swiss Franc against the Euro. This client negative balance will have no material negative financial impact on the consolidated performance and the business operations of the Company. Even if all the client negative balance is unrecoverable, the impact on these client negative balance on the financial condition of the Company will be minimal, given the fact that the consolidated net assets of the Company is 80.2 billion yen as of the end of September 2014, and the amount of client negative balance corresponds to 0.2% of the consolidated net assets.
TradeStation issued the press release titled “TradeStation Announces no Material Impact from Swiss Central Bank Action on Swiss Franc” on January 16, 2015 in the U.S.