The Swiss National Bank. Photo / AP
Global Brokers NZ, the currency brokerage that shut down last week after an unexpected surge in the Swiss franc, has so far returned more than half of its clients' funds, says the Financial Markets Authority.
The Auckland-based company, which operates the Excel Markets trading system, has said most of its
clients holding franc positions had been on the losing side of trades after Switzerland's central bank suddenly removed the currency's peg against the euro.
Global Brokers said client losses that could not be covered were passed on to the brokerage. As a result, it was unable to meet minimum regulatory capital requirements of $1 million and had to shut down, the firm said.
FMA spokesman Andrew Park said the directors of the brokerage had told the regulator that they had up to 800 clients around the world, only about 40 of which were based in New Zealand.
The brokerage had indicated that over half of the $2 million in funds held in client accounts had been returned and the company was continuing to return funds, Park said.
