Six months on – what has been the real impact of the SNB event?

Bryan Seegers, Head of eFX and Pricing, ADS Securities looks at the wider implications of the Swiss National Bank (SNB) removing its trading floor of 1.20 franc per euro and how the industry is adapting to the longer term issues accelerated by the Swiss National Bank (SNB) actions.

First Published: e-Forex Magazine 61 / Leader / July, 2015

It is now clear that the effects of the SNB in January 2015 have reverberated through the FX market and the final result is still unknown.  When speaking to colleagues in the industry many agree that these ‘changes’ were going to come anyway, and were just accelerated by the violent move in the market which was so negative for a large number of firms.   The one thing for certain is that the overall market landscape is changing with risk, liquidity and regulation being at the forefront.  The real test for the next year will be how firms adapt to these changes and if they have the ability and balance sheet to do so.   Managing Risk Following the SNB de-peg I believe the first hot topic for all market makers and brokerages running a risk book was risk management.  Obviously there are many forms of risk to consider but for brokers it was how you were able to handle the massive inflow of CHF while your providers were pulling away.  Did you run a ‘yes...continued

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