logo-loader
viewIG Group

IG Group spanked by Swiss franc surge

tradersfloor350_54b7e11fcc164.jpg

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.

Quick facts: IG Group

Price: 788.5 GBX

LSE:IGG
Market: LSE
Market Cap: £2.91 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Algernon Pharmaceuticals receives US FDA clearance for Phase 2b/3 human study

Algernon Pharmaceuticals Inc. (CSE: AGN-OTCQB: AGNPF) CEO Christopher Moreau joined Steve Darling from Proactive Vancouver with major news for the company that they have received clearance from the U.S. FDA for its multinational Phase 2b/3 study of Ifenprodil as a potential treatment for...

4 hours, 41 minutes ago

2 min read