IG to Re-Price Swiss Franc Trades after Financial Ombudsman Decision

One of the major U.K. brokers which lost a major amount of funds during the Swiss franc crisis, IG Group Holdings plc (LON:IGG), has just released an announcement via the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term website, detailing that the firm will be adjusting the fill rates for its clients on Swiss franc trades on the 15th of January.

The Swiss franc Black Swan Black Swan A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in A Black Swan event is most commonly associated with an unforeseen calamity or event. In its most basic form, this event results in disastrous consequences for multiple parties, markets, or individuals and are characterized as extraordinarily rare in frequency, yet are seemingly predictable in retrospect. In the foreign exchange space, the most noteworthy of these events in recent memory was the Swiss National Bank (SNB) crisis which roiled currency markets back on January 15, 2015.During this in Read this Term has already impacted the company, as it announced in the aftermath that it was facing up to £30 million losses ($45.7 million). The decision of IG Group Holdings plc (LON:IGG) was taken after the U.K. Financial Ombudsman Service (FOS) determined that the fill rate which a particular client got in the aftermath of the Swiss National Bank removing the floor under the EUR/CHF could have been better.

The decision will affect all of the Swiss franc trades on that day, yet the adjustment to the fill rate does not appear to be very substantial, since the additional financial impact for the broker is close to £1 million. IG Group has previously stated that it expects to cover the majority of client losses suffered on the 15th of January.

Clients of the company have been vocal about the fill rates at which their trades were executed, as the brokerage provided a rate of 0.9250 on the EUR/CHF pair. The rate has been much lower when compared to a number of other retail brokers who started filling client orders at rates above 1.1200.