As market participants learn of the fate and casualties surrounding some of the industry’s biggest names in FX, other players such as CMC Markets have indeed survived the dilemma despite marginal losses.
As the details emerge from each broker, it is becoming much clearer which companies were better prepared for such an event, with Alpari UK, FXCM and IG Group being the hardest hit.
Conversely, OANDA, LMAX Exchange, IC Markets, Darwinex, Pepperstone and ADS Securities have all passed with flying colors, calming investors’ nerves with statements of “business as usual”.
Business as Usual the Phrase of the Day
CMC Markets joins this growing list of firms that will live to fight another day. Forex Magnates observed back in November that the group was particularly robust, fueled by mounting client applications to the tune of 30%.
According to Peter Cruddas, Chief Executive, CMC Markets, in a recent statement on the market wide upheaval, “Yesterday's unprecedented move by the Swiss National Bank created a large amount of Volatility in the Swiss franc and Foreign Exchange markets.
Like many of our competitors, CMC Markets sustained some losses, however, the overall impact including possible bad debts has not materially impacted the Group. The Group’s balance sheet post these events remains strong, with a regulatory capital ratio of 24% (300% pre CRD IV) and own funds in excess of £130m.
All retail client funds are fully segregated and protected. CMC Markets continues to have a strong balance sheet and business model; the Group remains on course to exceed last year’s financial performance. It’s business as usual.”
City Index No Worse for Wear
In addition to CMC Markets, City Index also appears to have avoided disaster. According to a recent statement released from City Index, “It has come to our attention that a number of retail brokerages have announced that this has resulted in them experiencing acute financial pressure.
Following this and queries from customers, we would like to take the opportunity to reassure our clients and confirm to the market that City Index has not suffered any material impact as a result of yesterday’s volatility and our financial position has not been affected. It is very much business as usual for City Index and our global client base.”
