Capital Trust Markets would like to inform all of its clients and the investing public that it has not been materially affected in any way by the unprecedented turmoil that resulted from the Swiss National Bank’s decision to remove the 1.20 floor on the EURCHF on Thursday, January 15, 2015. Capital Trust Markets is heavily backed financially and has industry-leading risk management practices.
As part of our commitment to providing exceptional services, all client funds are held in segregated accounts and placed in Tier 1 global banks with a minimum credit rating of A+.
Our team is currently looking to acquire insolvent Forex brokerages that were hit hard by the unexpected removal of the 1.20 floor on the EURCHF by the Swiss National Bank on Thursday, January 15, 2015, says Reza Mokhtarian, President & CEO of Capital Trust Markets (CTM Group Ltd.).
The unprecedented collapse of the foreign exchange markets pushed the Forex industry to the brink of collapse, as most big name brokers suffered catastrophic losses. Two leading brokers – UK-based Alpari and New Zealand’s Excel Markets – declaring bankruptcy. Another New Zealand brokerage, Global Brokers NZ, also called it quits after reporting unfathomable losses.
UK-based IG Group and Switzerland’s Swissquote were also among the casualties, with each reporting tens of millions of dollars in losses.
US broker FXCM was on the brink of insolvency before receiving a $300 million bailout from Leucadia. Canadian broker OANDA also suffered huge losses and was quick to release a statement explaining its “vanishing liquidity.” Many other brokers canceled withdrawals and forced traders to close open positions as liquidity quickly dried up, leaving investors devastated.
When the dust settles, many more of the world’s biggest Forex brokers are expected to fall like dominos, highlighting the lack of preparation of most major firms.
“In lieu of these dramatic events, Capital Trust Markets is putting out an open invitation to any cash-strapped Forex broker looking to consolidate,” adds Mokhtarian. “We are focused on acquiring other brokerages and client lists that were affected by these unforeseen events.”
Founded in 2013, the New Zealand-based brokerage has swiftly climbed the ranks to become one of the world’s fastest growing Forex brokers. The company, which is backed by large global investors, has spent the better part of two years building its risk management infrastructure and proprietary online trading services, while forging extensive partnerships with interbank liquidity providers. Unlike other brokers, CTM has developed its own risk management algorithms, online trading applications and liquidity management tools. This has helped CTM offer the best trading infrastructure in the Forex industry and mitigate against unforeseen shocks to the system, like the events of January 15, 2015.
“Due to record volumes, Thursday was an extremely profitable day for us and our clients,” Mokhtarian added. “Not a single client was adversely affected by price stoppage, re-quotes or trading pauses. We have deep interbank liquidity and currency reserves with several financial institutions around the world, so the unusually high levels of volume we experienced on Thursday had no discernible impact on our operating capacity. Our trading volumes have increased exponentially over the last six months and we expect to scale up accordingly to meet the demand of hundreds of new clients each month.”
When asked about CTM’s acquisition plans, Mokhtarian said, “We are well positioned to acquire and replace distressed firms. We are looking to finalize a series of acquisitions by the end of the quarter.”