For those who are faced with margin calls this morning, it’s important to get as much information as possible on how the market traded immediately after the SNB announcement and then make a decision on whether you’ve been fairly treated by your broker. Once you have agreed on common ground then you can have a sensible discussion on what the next step is.
This all occurred at around 8:30 pm Sydney time yesterday so please take that into account time-wise:
Prices traded at 1.1972 at 08:30:48 and there was only 1 other trade on the 1.19 handle. We cannot be sure of the amounts but it could have been as little as EUR 1 million per trade;
Following on from there, there were 8 trades on the 1.18 handle, 4 on 1.17, zero on 1.16, 2 on 1.15, 4 on 1.14, 3 on 1.13 and 5 on 1.10. Once again these trades could all have been for as little as EUR 1 million, we have no way of knowing this proprietary information;
Prices traded at Parity, 1.0000, at 08:31:46, so less than 1 minute after the first trade below 1.20.
Modest liquidity only entered the market after 08:35 when prices were still trading around 1.00.
Based on the speed of the move and the size of positioning compared with liquidity, I would consider it to be a minor miracle if any large number of sizeable positions were executed above 1.05 on average. I will continue to try and dig up as much information as I can.
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