The Swiss National Bank’s (SNB’s) sudden decision to end the Swiss franc's peg to the euro last week has seen spreadbetting firm Alpari (UK) Ltd going into administration after facing large losses as the currency rose in value by 25% in a single day
Richard Heis, Samantha Bewick and Mark Firmin of KPMG have been appointed special administrators to spreadbetting platform Alpari (UK) Ltd.
The foreign exchange broker, which sponsors Premier League football club West Ham, applied for insolvency on Monday 19 January 2015. Around 170 jobs are at risk at its offices in the City of London.
In a statement, KPMG said SNB’s unexpected decision to remove the ceiling on the franc on 15 January prompted volatility across the foreign exchange markets, resulting in severe financial difficulties for Alpari (UK) and many of its clients when the franc rose by more than 30%.
Despite a weekend spent in urgent discussions with various parties with a view to selling the company, these efforts were ultimately unsuccessful.
Richard Heis, partner at KPMG and joint special administrator, said: ‘Following the announcement by the SNB last week, Alpari (UK) Ltd sustained substantial losses as a result of negative client balances, and was faced with no other choice but to enter into special administration.
'We have had a number of enquiries from interested parties in relation to the company's business. We will be speaking with these parties and others over the next few days, and hope to secure a deal to preserve the business and jobs as far as possible.’
Heis said the company holds around $98.5m (£65m) of retail client money which has been segregated and will be returned to clients by KPMG.
Reports from US newspapers suggests that Pepperstone, an Australian foreign exchange trading firm, was interested in possibly buying Alpari (UK), while IG Index and ETX Capital are also said to have shown an interest in the company.
Alpari (UK) signed a £9m, three-year deal with West Ham FC in 2013.
