(Reuters) - Retail currency broker Alpari UK, which last week said it had entered into insolvency after suffering losses stemming from the scrapping of the Swiss franc’s cap, announced it was considering all options including a sale.
“For the avoidance of any doubt and notwithstanding previous announcements by the company, Alpari (UK) Limited has not entered a formal insolvency process,” the company said on its website.
“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,” it said.
The Financial Conduct Authority (FCA), which regulates the financial services industry in the UK, had said on Friday it was working closely with Alpari.
The sponsor of English Premier League football club West Ham, is just one of many retail currency brokers reeling from the Swiss National Bank’s (SNB) sudden move last week to ditch its three-year capping of the franc at 1.20 per euro.
The decision had resulted in a surge in the Swiss franc, exceptional volatility and an extreme lack of liquidity, which in turn saw many clients sustain huge losses that brokerages ultimately had to bear.
New York-listed FXCM Inc was forced to turn to Leucadia National Corp to secure a $300 million loan to cover losses of $225 million suffered by its clients.
Industry news site Forex Magnates, citing unnamed sources close to the matter, said that FXCM has emerged as a potential buyer for the business of Alpari UK.
Alpari and FXCM could not be immediately reached for comment.
Reporting by Ian Chua; Editing by Muralikumar Anantharaman