Windsor Brokers Ltd. recently published its ‘Disclosure and Market Discipline Report’, announcing the company’s Capital Adequacy Ratio (CAR) end 2014 at 44%, which is nearly 10% higher than in 2013, and currently five times the minimum required by law and a Tier 1 Equity 19.4% higher than last year.
“Throughout the years, a significant percentage of our profits were used as capital reinvestment so this helped to increase our capital adequacy ratio – currently one of the highest worldwide in the FX industry. When the crisis arose, our promptness and capital adequacy made a difference. This provided safety to us and to our clients,” said Jabra Serieh, Director of Marketing at Windsor Brokers Ltd.
Despite the economic downturns related to the economic crisis worldwide and the various events that affected the financial markets during the past 12 months such as Black Thursday, Windsor Brokers has managed to maintain and to increase its capital reserves.
“We have a sophisticated risk management framework in place and inform clients to take their own precautions and to look after their trading activities. During extraordinary market conditions, such as the recent Black Thursday, we informed clients that we would temporarily increase margin requirements on CHF instruments in order to protect them from overexposure to risk. It is advisable to do so when markets are hectic until market volatility settles to normal levels”, said Walid Assaf, Director of Trading Operations at Windsor Brokers Ltd.
Investors usually consult the ‘Tiers 1 Capital’ and the Capital Adequacy Ratio figures to check if a company has adequate capital reserves in comparison to the financial risks that it is exposed to and whether it is capable of sustaining its own operations in addition to those of investors.
For the complete disclosure report from Windsor Brokers, click here.