Australia based retail forex broker Pepperstone has issued a statement it entitles ‘Business as Usual’, in wake of the news from certain other brokers that they sustained heavy losses Thursday after large moves in Swiss Franc CHF pairs.
Pepperstone stated that it has been ‘largely unaffected’ by these events and that it continues to hold well in excess of its ASIC regulatory capital requirements.
Thursday’s incredible action in the currency markets saw the closure of New Zealand broker Excel Markets, an admission by IG Group Holdings plc (LON:IGG) that losses could reach £30 million, and a statement from FXCM Inc (NYSE:FXCM) that clients experienced significant losses and generated negative equity balances owed to FXCM of approximately $225 million, and as a result it now may be in breach of some regulatory capital requirements.
Pepperstone’s statement reads:
Over the last 24 hours the currency markets have seen extreme volatility due to the Swiss National Bank’s abandonment of its EURCHF floor. This extreme volatility has rocked the markets with many brokers reporting major losses.
At Pepperstone, our strong financial profile and risk management systems mean that the business is operating as usual and has been largely unaffected by these events.
Pepperstone continues to hold well in excess of our ASIC regulatory capital requirements.
While we have experienced a high volume of support related inquiries around the recent market volatility, our trading and support hours remain normal. Feel free to contact us should you have any questions.
You can see the original statement on Pepperstone’s website here.