LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
While the big move in the Swiss Franc is now history, there is still some uncertainty remaining as liquidity providers, brokers and traders still try to process the unprecedented move of a major currency without any forewarned guidance. The Swiss National Bank decoupling CHF from the Ruro peg really shook the market, as reported earlier… other retail brokers such as Gain Capital reported difficulty sourcing any liquidity and IG Group got caught off guard, costing the company a pretty penny today – upwards of $45m dollars.
Why the move wasn’t gradual we’ll probably never know. Further to this news, globally regulated Forex brokerage giant FxPro decided to suspend trading until further notice. The image above shows a frozen trade panel on the EUR/CHF pair, earlier in the day spreads did normalize on FxPro to around 4-5pips, so it seems to be a business decision and not so much a problem getting liquidity at this point. You can read the official letter sent to clients below:
Due to the unprecedented market conditions seen across CHF pairs today FxPro have taken the decision to suspend trading on all CHF Pairs. Despite attempting to maintain a suitable trading environment for our clients, the conditions experienced today have made this unsustainable. For this reason we have taken this decision in order to protect the interests of all FxPro clients.
FxPro will resume pricing these pairs once market stability returns. For clients with open positions, please contact the FxPro Dealing Desk at +357-25969237 if you wish to close your open positions.
We would like to apologize for any inconvenience caused by this trading suspension, however due to the current market circumstances we cannot offer trading on the CHF pairs at this current time.