The number of Swiss National Bank casualties grow. Following the sudden removal of CHF's Euro peg by the SNB, forex industry hit hard by extreme market volatility that has resulted in hundred million dollars of losses and the closure of a number forex brokers. Two weeks on, further reports revealed heavier casualties than what was reported in the early days.

The number of Swiss National Bank casualties grow. Following the sudden removal of CHF's Euro peg by the SNB, forex industry hit hard by extreme market volatility that has resulted in hundred million dollars of losses and the closure of a number forex brokers. Two weeks after the day now known as the Black Thursday, further reports revealed heavier casualties than what was reported in the early days.

SNB Casualties

Liquid Markets, Boston Prime Shut Down

Cyprus CySEC reported that no Cyprus brokerage fell under minimal capital requirement as the result of SNBombs, but they mentioned that 24 companies suffer losses as much as 47.9 million USD. But this is not the biggest casualty yet. Two UK FCA-regulated forex brokers disclosed insolvency this week following behind Alpari UK, Excel Markets, and Global Brokers NZ. The first is the popular Liquid Markets (LQD). And the second is Boston Prime, a brokerage division of forex trading liquidity and technology provider company Boston Technologies.

After starting business as Tadawul FX in 2006, Liquid Markets has pocketed several years of experience in offering online forex trading from its headquarter in Limassol, Cyprus. However, SNBombs prove to be too much for them, and it has now announced that they have closed all open positions and will cease offering regulated services. Insolvency is also experienced by Boston Prime. Its digital address at www.bostonprimefx.com is now only displaying insolvency notice as all trading services have been disabled. Both brokerage house are now in close communication with UK FCA as their licensor.

 

More Than A Billion Loss

These sad news raised the number of losses in the forex industry to a new height. The following is a list of SNBombs casualties per January 28th, 2015:

1.Insolvent Brokers

  • Excel Markets (New Zealand)
  • Global Brokers NZ (affiliated with Excel Markets)
  • Alpari UK (UK)
  • Liquid Markets (UK)
  • Boston Prime (UK)


2. Other Losses (Estimation)

  • Interactive Brokers: 120 million USD
  • LCG: 2.6 million USD
  • Saxobank: 107 million USD
  • MonexGroup (Japan): 1.37 million USD
  • FXCM: 225 million USD
  • IG: 45.5 million USD
  • Swissquote: 28.4 million USD
  • CITI: 150 million USD
  • 24 Cyprus brokerages: 47.9 million USD

Add that figures with undisclosed small losses of other firms and what it costed big banks when their platform froze, overall loss in the industry could be in the range of more than a billion US Dollars. Noting that most of those brokers are of the non-Market Maker variety, there might be some truth to the claim that Market Maker brokers are not all bad.