Chaos in the FX Market: What does the CHF Story mean for the industry?

What are the long term implications of the chaos caused by the Swiss Central Bank’s decision to pull its three-year old EUR/CHF floor?

If central banks are supposed to support orderly markets, the SNB’s decision caused the opposite.
What were the mechanics of how the market was informed of its decision?
How did FXPBs survive and will this affect their willingness to provide credit going forward?
Did regulation lead to a “hot potato” reaction because banks can no longer take sizeable amounts of risk?
Will banks continue to provide pricing into the retail sector?
How did liquidity providers perform after the announcement? Did the downstream liquidity providers struggle in the stressed market conditions?
How did firms with a principal execution model fare in comparison to those with an agency model?
Did the FX Fix scandal that resulted in 40 senior traders exiting the market cause an “experience gap”?

Christopher Cruden, CEO, Insch Capital Management
Erik Lehtis, Head of Trading, Vision FX
Bob Savage, CEO, CCTrack Solutions

Colin Lambert, Managing Editor, Profit & Loss 

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Michelle Hemstedt

Michelle Hemstedt

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