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In general, the following is what happened 09:30 15th Jan 2015. Swiss National Bank pulled the 1.20 Eurchf floor. As a result, it dropped significantly. In the first 5 minutes in dropped to between 1.191 and as low as 1.1. IG decided to spend 10minutes in aggregating client positions so that IG can sell the EURCHF in one go. Some lucky punters who had no stops or were in the aggregation process were managing to sell via the platform between 9:30 and 9:36. The fill was derived from their hedging via USDCHF. Their reasoning was due to lack of liquidity however we mention three key points 1-they took too long to aggregate and as a result they missed liquidity 2-they act as principal so why should clients care about liquidity. 3-why should clients shoulder all the losses when it was IG's process that failed and their liquidity providers let them down They knew at all points in time what the exposure was. ...not the customers.
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