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Forex brokers are not all out of the woods yet when it comes to accounting for January 15 Swiss Franc spike losses.
The latest victim was unveiled today, with the declared bankruptcy of midsize Russian MT4 forex broker RVD Markets. And RVD clients are now scrambling on Forex forums trying to figure out how they can go about getting back their money.
RVD Markets’ website has emerged with a sad message from the company:
The RVD Markets LTD company announces the initialization procedure of bankruptcy.
Due to unsuccessful hedge operations at the beginning of calendar year on collapse Euro to Swiss franc practically all funds segregated for clearing positions of clients on accounts at liquidity providers were exhausted. We made a desperate attempt to regroup clearing operations on the basis of internal overlapping positions of customers and and searching third-party investments for reanimation company.In view of the bankruptcies of numerous broker companies, the trust of private investors fell to the critical level, thus was formed a negative balance of deposits-withdrawals on trading accounts of company clients.The situation was compounded by the blocking of the accounts of the company in a number of banks with with freezing of assets for an indefinite term. So as an attempt to attract private investors to stabilize the activity of the company was not successful, it does not make sense to continue catastrophically unprofitable activity of the RVD Markets company.
Trading will be suspended with closing markets on world time as well as blocking deposits on trading accounts of clients.
It will be defined sequences of payments to clients after completion of procedure of bankruptcy, unblocking holds of funds in payment systems and banks and realization of liabilities of the company in the form of the software
Thanks to all clients for their trust and we are sorry for the situation.
The company was targeting primarily the Russian market, but was claiming international presence on its website.
“RVD Markets Limited is one amongst the leading forex broker companies, providing high-quality services in the financial markets for the clients. RVD Markets, as the best forex broker company UK, unites the group of companies, registered in British Virgin Islands (RVD Markets Limited), Ukrainian partner company “RVD Markets”, having the license for broker and dealer activity, Russian partner company JSC “RVD Markets” and British company RVD Capital Holdings LTD., which is authorized to accept payments from bank cards in favor of the Ukrainian company.”
The Contact Us page refers to several addresses, including ones in Russia, the British Virgin Islands and the UK.
Given the lack of any license and a participation in any compensation fund or scheme, RVD Markets’ clients now face a desperate situation.
The demise of RVD Markets comes after several Forex companies were forced to declare insolvency after the Swiss National Bank (SNB) abandoned the limits for the EUR/CHF exchange rate. Alpari (UK) Ltd, LQD Markets and Excel Markets are amid the victims of “Black Thursday” events.
US Forex giant FXCM Inc (NYSE:FXCM) also suffered heavy losses due to the EUR/CHF move on January 15, 2015, but managed to obtain a $300 million rescue loan from Leucadia and is now on track to repay it.