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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.

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IG Group Timeline

January 15 2015
September 17 2013
September 11 2012

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