By Jonathan Davies
Online foreign exchange broker, Alpari UK, which is the main sponsor of West Ham United Football Club, has entered insolvency after its clients suffered huge losses on the Swiss franc.
In a statement on its website, Alpari said: "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.FIFA Coins This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules."
The Swiss National Bank yesterday (Thursday) scrapped a cap on the value of the Swiss franc against the euro, claiming it was no longer justified.
That caused the value of the Swiss franc to surge, but dramatically impacted on Swiss shares.
Alpari and West Ham signed a three year sponsorship deal in 2013 and still have 18 months left.
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