What Fallout? JPMorgan Reaps $250-300 Million in Profits during Swiss Volatility

While many other banks and corporate entities are reeling from the SNB-induced Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term of the CHF, JPMorgan Chase (NYSE:JPM) appears to have earned a nice profit of $250-300 million.

As the results of this month’s Swiss turmoil shows, the FX realm is always a zero sum game with clearly defined winners and losers. While many retail FX brokers bore the brunt of massive bouts of CHF volatility, large institutional banks such as Citigroup Inc., Deutsche Bank AG, and Barclays Plc suffered roughly $400 million in cumulative trading losses.

According to a recent Bloomberg report, JPMorgan FX traders managed to earn a staggering $250-300 million on the day of the SNB’s abandonment of its peg. Many others were not so lucky. Large institutional banks, retail clients and traders experienced varying levels of success and disaster as many markets went dark following massive convulsions of the EUR/CHF and USD/CHF.

Contrary to others, JPMorgan told its clients it would complete all orders at 1.02 francs per euro as the Swiss currency appreciated from 1.2000 francs per euro to almost 0.8500 back on January 15.