On anniversary of Swiss black swan, Dukascopy will take action against potential negative equity, this time on USDCNH

On January 15, 2016, one whole year will have passed since the Swiss National Bank removed its 1.20 peg on the EURCHF pair, sending markets into unprecedented volatility, causing some brokerages to be exposed to negative client balances, and other brokers to cease to exist altogether, so grave was the exposure. Switzerland’s own Dukascopy Bank […]

Swiss black swan

On January 15, 2016, one whole year will have passed since the Swiss National Bank removed its 1.20 peg on the EURCHF pair, sending markets into unprecedented volatility, causing some brokerages to be exposed to negative client balances, and other brokers to cease to exist altogether, so grave was the exposure.

Switzerland’s own Dukascopy Bank has today issued a notice that on the anniversary of the Swiss National Bank event of last year, January 15, 2016, it will also be taking a look at volatility and potential exposure to negative client balances, albeit this time between the USD/CNH (Chinese offshore Hong Kong based renminbi).

Dukascopy Bank has today issued a notice stating that due to the current high volatility and low liquidity on USD/CNH, the company considers that there is an increasing risk of significant price gaps, which may cause negative equity on client accounts. Because of that Dukascopy Bank and Dukascopy Europe are forced reduce maximum leverage for exposures on USD/CNH to 1:10 as of 15 January 2016 at 11:00 GMT.

The company advises that traders are invited to estimate their margin usage at the moment that the leverage reduction on USD/CNH will be applied and adjust their exposure if needed, and recommends to note that for all accounts where there is no such USD/CNH exposure the lower maximum leverage will be applied today, 12 January 2016.

Additionally, Dukascopy Bank asks traders to further note that Swaps in USD/CNH have seen a dramatic price shift from less than 10 pips last week to above 100 pips as of today.

Read this next

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

“The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

<