15th Jan 2015 14:34
LONDON (Alliance News) - IG Group Holdings PLC said it doesn't expect losses stemming from the Swiss National Bank's unexpected decision to remove the ceiling for the Swiss franc against the euro to exceed GBP30 million, although its ability to recover client debts will play its part in exactly how much is lost.
IG Group, which provides online financial trading to clients, was commenting in the wake of the Swiss franc soaring against the euro in chaotic trade after the central bank said the cap, which was introduced in September 2011, was no longer required.
"The market exposure occurred where client positions were closed at a more beneficial level than the company was able to close its entire corresponding hedge due to the market dislocation," IG Group said in a statement.
"This occurs against the backdrop of very strong recent and current performance and IG's extremely robust financial position," IG Group added.
IG Group shares were down 5.5% at 701.00 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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