IG to Re-Price Swiss Franc Trades after Financial Ombudsman Decision

One of the major U.K. brokers which lost a major amount of funds during the Swiss franc crisis, IG Group Holdings plc (LON:IGG), has just released an announcement via the London Stock Exchange website, detailing that the firm will be adjusting the fill rates for its clients on Swiss franc trades on the 15th of January.

The Swiss franc Black Swan has already impacted the company, as  losses ($45.7 million). The decision of IG Group Holdings plc (LON:IGG) was taken after the U.K. Financial Ombudsman Service (FOS) determined that the fill rate which a particular client got in the aftermath of the Swiss National Bank removing the floor under the EUR/CHF could have been better.

The decision will affect all of the Swiss franc trades on that day, yet the adjustment to the fill rate does not appear to be very substantial, since the additional financial impact for the broker is close to £1 million. IG Group has previously stated that it expects to cover the majority of client losses suffered on the 15th of January.

Clients of the company , as the brokerage provided a rate of 0.9250 on the EUR/CHF pair. The rate has been much lower when compared to a number of other retail brokers who started filling client orders at rates above 1.1200.

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