Proactive Investors - Run By Investors For Investors

IG Group spanked by Swiss franc surge

IG Group spanked by Swiss franc surge

Spread betting firm IG Group (LON:IGG) has been caught on the hop by the Swiss National Bank’s decision to abandon its euro currency ceiling.

The decision to abandon the 1.20 Swiss francs to the euro cap it imposed back in 2011 saw the Swiss currency surge on foreign exchange markets this morning, leaving the spread betting firm exposed.

The company said many clients were able to close out their Swiss franc positions with IG more swiftly than IG managed to close out its hedged position on the currency in the foreign exchange markets.

The firm said the losses incurred from this morning’s volatility will partly depend on how successful it is in recovering client debts, but it estimated that the damage would not exceed £30mln.

Shares in IG tumbled 5.7% to 700p after the announcement.

View full IGG profile View Profile

IG Group Timeline

Newswire
January 15 2015
Newswire
September 17 2013
Newswire
September 11 2012

Related Articles

The fund has doubled the capital it has raised to $100 million since September
April 11 2019
The company’s fund gives investors access to 3.25-6.45% returns over set terms.
Braveheart
July 08 2019
On 8 July, the company said that it had acquired a 33% stake in Pharm2Farm Limited, a plant nutrients firm
Miner
June 07 2019
The mineral resources investor thinks the macroeconomic environment is favourable to the mining sector. It has four investments that over the next 18 months or so could see it repeat the success it had with its investment in the Prognoz silver project in Russia.
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use