Malta Regulator Requests Brokers Affected by CHF Crisis to Report Losses

The Securities & Markets Supervision Unit of the Malta Financial Services Authority (MFSA) has issued today a request for brokers licensed in the country to report the effects of the CHF crisis on their business.

The MFSA is a few days behind regulators of other Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term hubs in finally requesting such information. The Cyprus regulator (CySEC) urged an assessment of investment firms licensed on the island on the 17th, and the UK Financial Conduct Authority (FCA) demanded the information be provided by the 19th.

The Maltese regulator wrote: "On Thursday 15th December 2015, the Swiss National Bank (SNB) announced that it will no longer be enforcing and maintaining the minimum exchange rate for the Swiss Franc against the Euro. As a result of this event, there has been significant 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 in FX markets in relation to Swiss Franc against a number of other currencies. In this scenario, the Authority requests that any licence holder affected by this market event should inform the Authority immediately without undue delay."

The MFSA requested the following:

1. Comments regarding the materiality of any losses (whether realised or

unrealised) vis-à-vis the scale of company’s operations, including, but not limited, to

the maintenance of minimum regulatory capital; and

2. any other factors which should be brought to the Authority’s attention.

Brokers are requested to provide this information as soon as possible and, in any event, by close of business Thursday, January 22nd, 2015.