Denmark's Saxo Bank, one of the biggest players in retail foreign exchange trading, will potentially set different rates for transactions conducted after the Swiss National Bank's shock removal of its 3-1/2 year old cap on the franc.
Saxo, an unlisted and privately controlled company, said in a statement it had filled client orders in an "extremely illiquid market" around the shock move on Thursday, already seen as having generated potentially huge losses for some investors.
"Once we are better able to establish the market liquidity, all executed fills will be revisited and amended to more accurate levels," Saxo Bank said in a statement. "This may result in a worse execution rate than the originally filled level."
Another player in the retail space, London-based interdealer broker IG Group, said many clients were able to close out their Swiss franc positions with IG more swiftly than the broker itself managed to close out its hedged positions on the currency in the forex markets.
This follows the news that Excel Markets has shutdown because of losses related to the Swiss central bank move. SEE: HOT Foreign Exchange Brokerage Firm Shuts Down Because of Swiss National Bank Policy Move; Does Not Have the Ability to Reimburse Losses From Trades Not Exited
There are probably other dead bodied that will come floating to the surface over the next couple of days.
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