Alpari, the British foreign currency exchange company has entered insolvency following market turmoil as a result of Switzerland’s decision to unpeg its currency from the Euro. In shock decision on Thursday, the Swiss National Bank made the decision to stop capping the Swiss Franc at 1.20 per euro. This reverse in a three year old policy caused uncertainty in the markets with the franc rising about a third against the euro. It is thought the decision by the central bank is to prepare for the use of quantitative easing in the eurozone.
It’s probably best known as the shirt sponsor of West Ham football club, but Alpari has been forced to shut its doors due to huge losses. In a statement it said that the move by Switzerland’s Central Bank had caused “exceptional volatility and extreme lack of liquidity”. This resulted in their clients suffering huge losses and this in turn was passed onto Alpari. The Financial Conduct Authority said that it was working closely with the company. Other foreign exchange companies have said they have been hit by the decision however none have been forced to take drastic action as yet.