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Attachments: CHF move as a broker "Stress Test" - Which tried to honor SL's?
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CHF move as a broker "Stress Test" - Which tried to honor SL's?

Losses for brokers estimated:
http://forexmagnates.com/foreign-exc...surpass-1-bln/
Quoting Erebus
SNBomb – Reactions from 27 forex brokers http://www.forexcrunch.com/snbomb-re...ampaign=buffer
Thanks for posting this link. I appreciated it a lot.
Quoting Forexia
{quote} Well they can't really mitigate their risk when there is no mechanisms for them to mitigate with. There was NO prices, NO quotes, NO market for them to mitigate their risk in.
"Gain Capital: (forex.com) “no material adverse financial impact”. They note that they increased margin requirements on CHF to 5% back in September. Update: they actually say they made a gain on the Swiss move."

Any other broker whose clients were gambling big on the CHF with the brokers money should have done what Gain did. It's basic risk management. Heads should roll at FXCM.
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,756 Posts | Online Now
Dukascopy:

"Dukascopy Group announces that it has safely passed through the CHF dramatic price shift. It was achieved thanks to advanced execution technology, careful risk management policy and reduced leverage on EURCHF till level of 1:10.
The scenario of such shock had been anticipated four months in advance as shown in Dukascopy news published on 3rd of October 2014: "Due to the possibility of a break of the 1.2000 floor in EUR/CHF which may see significant price gaps and cause negative equity on client accounts, Dukascopy Europe is forced to implement a maximum leverage for EURCHF exposures of 1:10 as of 12 October 2014".
Dukascopy well known ECN business model and careful risk management approach proved once again to be reliable and trustworthy."
MT4/MT5 EAs/Indicators/Alerts coder
  • Post #125
  • Quote
  • Edited at 2:50pm Jan 17, 2015 9:19am | Edited at 2:50pm
GlobalPrime has been garnering rave reviews since they launched..they dont do any MM or bucket shop BS..this was good enough to be fair to them..one can ascribe the slippage to server latency as prices changed by the millisecond and as little as even 3ms...Jeremy and his team have been doing good stuff over there..

so far the confirmed score board for honest-to-God brokers who also have prudently managed risk internally stands as follows following Black Thursday;

+Global Prime(Australian)
+Flatefx(German)
+Tickmill(Seychelles)
+Dukascopy(Switzerland)
+Liquid Capital Group(UK)
+IC Markets(Australia)
+Gain Capital(USA)
+Plus 500(UK)
+LMAX(UK)

List as at 17th January 2015 @ 7.49pm GMT
Carpe Diem
From LMAX website

London, 16 January 2015 - LMAX Exchange, the world's only regulated MTF for FX, today reported business as usual following the extreme market volatility caused by the discontinuation of the CHF peg by the SNB with the only changes being temporary increased margins of 10% on EURCHF and USDCHF and 5% on other CHF crosses.
CEO David Mercer commented that "Thursday was a difficult day for the FX marketplace and our clients following the unprecedented volatility in the Swiss Franc. Our strict risk controls and robust technology ensured that LMAX Exchange suffered no significant financial repercussions. We expect business as usual for our clients on Friday with no change to our international operation in London, Hong Kong and Tokyo. The benefits of exchange style execution and limit order book transparency were clear to see after the general market dislocation created by the SNB announcement. "
Quoting nkimandi
GlobalPrime has been garnering rave reviews since they launched..they dont do any MM or bucket shop BS..this was good enough to be fair to them..one can ascribe the slippage to server latency as prices changed by the millisecond and as little as even 3ms...Jeremy and his team have been doing good stuff over there.. so far the confirmed score board for honest-to-God brokers who also have prudently managed risk internally stands as follows following Black Thursday; +Global Prime(Australian) +Flatefx(German) +Tickmill(Seychelles) +Dukascopy(Switzerland)...
yes..global prime very transparrent..they provide the liquidity by email
FXerha
Simple & effective All Time Profit: -9,318
I guess Oanda did well as well
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  • Post #129
  • Quote
  • Edited at 1:00pm Jan 17, 2015 12:27pm | Edited at 1:00pm
I wonder though how can we believe anything they say and serve without even showing us one bit of evidence that would justify those price levels, all that we see is that crap one minute mt4 chart (in most cases) and some bogus explanation that goes like -Yeah well we reviewed prices and you get nothing-- blabla--. I mean we are not talking about peanuts here its about thousands of funds per individual. I mean they just pool some prices from thin air inventing some spread and decide who gets what. Me for example got stopped out at 1.08 usdchf... ridicules would be underestimation.
In situation where they invent 25 cent spread per 1 dollar of course everyone involved loses everything and more and they happily bank our deposits, and whit that money now proudly announce how unaffected they are and how robust their technology is and so on.
Wonder how Finfx did? They are a pure ECN broker with NO Market making side of business.
Make your losses in demo. Earn your profits live.
Quoting Forexia
Wonder how Finfx did? They are a pure ECN broker with NO Market making side of business.
I guess they are Ok:

https://www.finfx.fi/en/news/finfx-r...u-snb-decision

SO it is survivable when operating in pure ECN model. You don't really need to be a market maker to survive this debacle.
Make your losses in demo. Earn your profits live.
What about Swissquote, I guess they are ok

SYSTEM PERFORMANCE OPTIMIZATION
The unusual high trading volume in the last 2 days has led to delays in performance despite a stable system. With regard to trading volume, we have experienced record highs. Two hours after the SNB announcement, our revenue increased tenfold. In addition to this, our platform was accessed by numerous prospects and visitors, who wanted to experience stock price development firsthand.
In order to continue to ensure optimal performance, we will optimize our systems today, Saturday, January 17, 2015 from 11:00 to 22:00 CET.
We apologize for any inconvenience and will be at your disposal during our usual opening times.
Swissquote Bank Ltd
IG
eurchf

I had SL at 1.1975 and stopped out at 0.9121.
That's more than 2500 pips slippage.

I now have massive negative balance which I can not afford.
.
Quoting euclid
{quote} "Gain Capital: (forex.com) “no material adverse financial impact”. They note that they increased margin requirements on CHF to 5% back in September. Update: they actually say they made a gain on the Swiss move." Any other broker whose clients were gambling big on the CHF with the brokers money should have done what Gain did. It's basic risk management. Heads should roll at FXCM.
Hi

This is an email I got from Forex.com

Update following yesterday's market events‏
https://blu176.mail.live.com/ol/clear.gifhttps://blu176.mail.live.com/ol/clear.gifhttps://blu176.mail.live.com/ol/clear.gifhttps://blu176.mail.live.com/ol/clear.gif
Update following yesterday's market events
FOREX.com
16/01/2015
https://blu176.mail.live.com/ol/clear.gif
https://a.gfx.ms/ic/bluemanmxl.png
View Online
Live Chat | Login
https://blu176.mail.live.com/Handler...x_logo_394.jpg
Account Notice https://blu176.mail.live.com/Handler...1%2fspacer.gif
Dear Client

Yesterday's unexpected announcement by the Swiss National Bank that it would be abandoning the cap on the Swiss franc's value against the Euro resulted in extreme volatility in the forex markets.

While we were surprised by the severity of the price action after the announcement, our assessment of the increased risk of trading EUR/CHF due to the SNB's monetary policy led us to increase the minimum margin requirement on this pair to 5% in September 2014. This decision helped to provide extra protection to our clients trading EUR/CHF and mitigate exposure to negative client equity in the event of a major market event.

After the SNB's announcement, there were significant price gaps and periods of illiquidity in the Swiss franc but we maintained our price feed throughout and filled client orders as liquidity became available. In keeping with our commitment to provide superior and consistent execution quality, we stand by yesterday's trades and will not adjust any trade executions.

FOREX.com has always taken a conservative approach to managing our exposure to global currencies and as a result we did not suffer losses on the day's trading activity. We remain financially strong and well capitalized, with regulatory capital well in excess of our global requirements.

I understand that some of you may have questions regarding yesterday's unprecedented events. I encourage you to contact us at any time. Our Customer Service team is available 24 hours a day during market hours.

Thank you for trading with us.

Sincerely,

Glenn Stevens
CEO, GAIN Capital


Cheers
I am negative with IGMARKETS at about $280K AUD.... My stop was at 1.200 but IG closed me out at 0.925.

Have spoken to someone at IG but he said he would get back to me as I have no way of paying this off... His first questions were do you have any assets to sell or how can you pay this off????

I am thinking about bankruptcy... I have no assets to sell to make way for this money.
I am in Australia and was hoping someeone could share any news about IG and are in the same boat



regards
TT
Quoting nkimandi
GlobalPrime has been garnering rave reviews since they launched..they dont do any MM or bucket shop BS..this was good enough to be fair to them..one can ascribe the slippage to server latency as prices changed by the millisecond and as little as even 3ms...Jeremy and his team have been doing good stuff over there.. so far the confirmed score board for honest-to-God brokers who also have prudently managed risk internally stands as follows following Black Thursday; +Global Prime(Australian) +Flatefx(German) +Tickmill(Seychelles) +Dukascopy(Switzerland)...
thx for the list , could you maybe add if the broker is an ECN / Market Maker / both ?
  • Post #137
  • Quote
  • Edited at 6:23am Jan 18, 2015 6:01am | Edited at 6:23am
Quoting vaultboy
{quote} thx for the list , could you maybe add if the broker is an ECN / Market Maker / both ?
welcome i will do that..am waiting for the Cyprus Regulatory Authority's (CySec) deadline to ALL brokers domiciled there to give an update by Tuesday
20th January 2015 on the state of their afffairs before updating the list further..

Link: http://www.forexfactory.com/news.php...13#post8003743
Carpe Diem
Quoting macsoj
What about Swissquote, I guess they are ok SYSTEM PERFORMANCE OPTIMIZATION The unusual high trading volume in the last 2 days has led to delays in performance despite a stable system. With regard to trading volume, we have experienced record highs. Two hours after the SNB announcement, our revenue increased tenfold. In addition to this, our platform was accessed by numerous prospects and visitors, who wanted to experience stock price development firsthand. In order to continue to ensure optimal performance, we will optimize our systems today, Saturday,...
sentiments noted..survival is not enough..managing internal risk sufficiently is also a factor..swissquote suffered losses
of around USD 33 million..the list am trying to compile also factors in the losses or even gains they made after Black Thursday
...too large a loss maybe a pointer to systematic problems that are covered up with capital infusions..not denigrating any
of those receiving infusions just stating an opinion
Carpe Diem
Quoting alfexcy
HotForex also covered their clients' losses. And no, it's not strange at all to cover them. If they didn't, those clients with negative balances would never deposit again would they? So they would also lose their clients... Saxo will lose those clients obviously. Common sense.
yes, it's really a good move. If they don't reset the negative balances into 0, what happens? Of course trader would completely leave their account.
After CHF "Stress test", Forex Factory (logo) was turned downside. FF maybe not suffer this test.
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