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21 January 2015, 11:20

TeleTrade remains intact from the Swiss shock

TeleTrade, a global financial services provider, would like to confirm that it has not suffered any impact as a result of the extreme price movement of the Swiss franc on the 15th of January 2015 and that its financial position has not been affected.

The Swiss National Bank sent shockwaves around financial markets on Thursday, 15th of January, by unexpectedly abandoning the EUR/ CHF cap, after emphasizing its importance just two days before. With the ECB ready to launch QE, the Swiss policy makers decided that it would have been very difficult and costly to preserve the cap at 1.20, so they opted instead for a further reduction in interest rates in order to keep a lid on the franc. In addition, the increased deviation between the monetary policies of the two major currency territories has increased considerably, thus resulting in a depreciation of the EUR against the USD and, consecutively, a weakening of the CHF against the USD.

The SNB’s decision triggered an extreme movement in the value of the Swiss franc and reduced liquidity in the foreign exchange market, which caused many brokers to suffer major losses in their trading activities. TeleTrade would like to report that this unexpected turn of events has not had any impact on the company, as its sound risk management system and negative balance protection procedures have effectively managed the company’s exposure to credit risk and safeguarded its financial robustness. TeleTrade would also like to emphasize that all client funds are kept safely in segregated accounts, according to CySEC’s rules, and that the company continues to maintain sufficient capital adequacy in line with the regulatory requirements.

In commenting about the situation, the company’s management stated that “TeleTrade’s long-lasting view of having a conservative approach to trading and offering reasonable trading conditions, such as fixed spreads and low leverage that protect investors, has been amply justified, allowing us to continue conducting business as usual or our global client base”.

About TeleTrade

Founded in 1994, TeleTrade is a truly global brand. With over 200 offices in 30 countries, the company is a leader in online trading of financial instruments, with numerous industry and business awards. TeleTrade-DJ International Consulting Ltd is licensed and regulated by CySEC, and operates in compliance with MiFID.

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