The announcement of the Swiss National Bank that it will no longer be enforcing and maintaining the minimum exchange rate for the Swiss Franc against the Euro has resulted in significant volatility in forex markets in relation to the Swiss Franc against a number of other currencies. This has particularly affected forex traders, including the large players in the industry.
The MFSA has issued a circular in this regard and is requesting any licence holder that has been affected by this market event to inform the Authority with details regarding the materiality of any losses vis-à-vis the scale of the company’s operations and any other factors that may be relevant. Losses brought about by this change may cause some licence holders to go below their minimum regulatory capital which may give rise to compliance issues.
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