15th Jan 2015 15:57
LONDON (Alliance News) - Plus500 Ltd said Thursday that the exceptional movement in the value of the Swiss franc has had "no material impact" on its financial and trading position.
The provider of a retail investor platform for trading Contract For Difference said it is experiencing a "profitable trading performance" Thursday, which it attributed to the "robustness of its risk management policies and processes which effectively managed the company's exposure to the Swiss franc."
Plus500's comments come after the Swiss franc soared against the euro after the Swiss National Bank decided to remove the ceiling for the Swiss franc against the euro.
Plus500 will announce its full year results February 25.
Shares in Plus500 are trading down 3.0% at 615.00 pence, having fallen to 566.38 pence earlier in the afternoon.
Earlier, 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.
"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.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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