ADS London Highlights SNB Changes.
By Sums on Tuesday,
After 15 January 2015, the Swiss National Bank unexpectedly announced that it will. Their withdrawal floor of 1.20 francs per euro The policy in force for three years, and within seconds, reducing the value of the euro against the Swiss France (CHF) by 30%, and billions of dollars were wiped out by the markets. ADS London Highlights SNB Changes.
One year on the impact of this event changed the way to operate all global currency markets, by James Watson, Managing Director of ADS Securities in London.
ADS London Highlights SNB Changes, Consequently billion were eliminated from the market and surprisingly a number of forex traders are affected by the black swan with the loss of their customers become your own. One year after the event, the manager of the London Stock Exchange ADS, James Watson, and Director emphasized the number of changes that have occurred since the sector.
“SNB’s decision was not an isolated event, which reflects the divergence in the policies of the Central Bank, which started in 2014. The central banks were increasingly adopting single market strategies and using all the tools at its disposal to try to ensure their own national economic recovery, “he said.
“The immediate consequence is that a number of Forex brokerage firms trading desks and investors suffered heavy losses. Some are not able to recover from these losses. We expected the risk with the EURCHF ceiling assigned November 2014 It changed our margins have helped us to protect, but I still feel the long-term impact and changed the industry for all participants.”Twelve months were three major changes. First, all market participants are much more risk averse. This is of prime brokers with brokerage firms. Most major brokerage firms have made substantial investment systems made visibility risks in real time, so that if there is a different kind can react from incident SNB. Brokerages that do not have these systems can provide a service, but it has happened a high degree of risk for the customer.