Interactive Brokers Lost $120 Million On The Swiss Franc

Retail trading platform Interactive Brokers lost $120 million following the Swiss National Bank's shocking decision to removed its peg against the euro.

In a statement, Interactive Brokers said:

GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) Due to the sudden move in the value of the Swiss Franc ("CHF") yesterday, several of our customers suffered losses in excess of their deposit with us. Such debits amount to approximately $120 million, less than 2.5% of our net worth.

In early trade on Friday, shares of Interactive Brokers were down about 6%.

The announcement from the company comes after a number of currency brokers around the world have revealed problems of their own following the SNB's decision, which saw the bank abandon its 1.20 target against the euro in a surprising decision on Thursday.

Among the notable companies suffering following the turmoil seen in currency markets following the SNB's move is FXCM, the largest retail currency broker in the US. In pre-market trade on Friday, FXCM shares were down as much as 90%, and near 9:55 am ET, shares of the company were halted, pending news.

(via FastFT)