Alpari UK has an updated statement up on its website saying it is not formally entered an insolvency process. A sale is considered. This is different than the previous decision.
The story develops. Here is the statement:
The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. Retail client funds continue to be segregated in accordance with FCA rules. For the avoidance of any doubt and notwithstanding previous announcements by the company, Alpari (UK) Limited has not entered a formal insolvency process. The board of directors are urgently considering all options including a sale and are liaising closely with the FCA. We hope to make a further announcement shortly.
Update, Sunday 15:10 GMT: while the page hasn’t changed, there is news: UK unit scrambling for sale; Japanese unit asks clients to withdraw funds
Update: Sunday, 16:00 GMT: Forex Magnates now reports the FXCM is emerging as the potential buyer of Alpari UK.
Update Monday, 9:18 GMT: LeapRate reports that Alpari UK denies an acquisition by FXCM.
Update Monday 10:10 GMT: Will Australia’s Pepperstone acquire the troubled firm? – New report emerging
Update, Monday 16:30 GMT: Alpari UK enters administration after no buyers found
You can read it here or basically on any page on their website.
Earlier, the key part of the statement read this: “This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency”.
Will Alpari UK find a buyer for the company?
Will it follow the steps of FXCM and get some kind of lifeline?
So far, many brokers reported losses due to the shocking Swiss decision to remove the floor under EUR/CHF and many reported “business as usual”.
The firms that stood out with serious issues were:
- Excel: A has not really known broker from New Zealand that closed shop.
- FXCM: One of the largest brokers in the world that reported a massive loss that put it in breach of capital requirements. This was followed by urgent negotiations that ended by receiving a lifeline from Leucadia worth $300 million.
- And Alpari UK, which reported insolvency and is now saying it has not entered a formal process.