"Due To The Current Market Environment In Europe", Saxo Bank Quadruples CHF Margins From 1% to 4%

Tyler Durden's picture


Yesterday, Reuters royally spooked the market when it announced that Europe is in all seriousness considering full blown capital controls, including border halts and ATM closures. Subsequently, various European talking heads aggressively tried to talk down this latest development. However, overnight Saxo Bank appears to have focused on the former and not the latter, and sent out an email with the following key text: "Due to the current market environment in Europe, Saxo Bank is adjusting the margin requirement for Swiss Franc (CHF)." Specifically, the margin is going from 1% to 2% on June 14, to 4% on June 21. How soon until margins become so high that they effectively act as an FX trading prohibition- i.e., an implicit "capital control", and how long until all other exchanges get the memo next?

Here is the link Saxo Bank provided to explain this move: CHF: Systemic risk and the EU debt crisis

h/t Manoj

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Tue, 06/12/2012 - 10:03 | 2517723 slaughterer
slaughterer's picture

At this point, the whole world is waiting for its next short entry into Euroland.  The banksters are raising the price of admission to the bear funhouse day by day.

Tue, 06/12/2012 - 10:10 | 2517765 Dan The Man
Dan The Man's picture

when does everyone just leave?

Tue, 06/12/2012 - 10:15 | 2517790 Dr. Engali
Dr. Engali's picture

When the panzers start rolling in.

Tue, 06/12/2012 - 10:11 | 2517769 GMadScientist
GMadScientist's picture

And still...a line around the block. ;)

Tue, 06/12/2012 - 10:03 | 2517730 GeneMarchbanks
GeneMarchbanks's picture

1970s Redux.

Tue, 06/12/2012 - 10:05 | 2517741 CPL
CPL's picture

It certainly has a familiar beat doesn't it?

Tue, 06/12/2012 - 10:04 | 2517738 Unprepared
Unprepared's picture

Come on Tyler, it's just a coincidence /sarc

Tue, 06/12/2012 - 10:06 | 2517747 Dr. Engali
Dr. Engali's picture

Due to current market conditions I am adding to my precious metals positions.

Tue, 06/12/2012 - 10:07 | 2517752 yabyum
yabyum's picture

Might be time to get a some PM's while you still can. A little metal is better than a whole shit load of paper anyway.

Tue, 06/12/2012 - 10:11 | 2517773 Dan The Man
Dan The Man's picture

not to be picky, but that time already passed.

Tue, 06/12/2012 - 10:11 | 2517756 AUD
AUD's picture

Expecting big losses in CHF/Euro?

It's not linear but the gold price has shown a positive correlation with an appreciating CHF over the last few decades.

Tue, 06/12/2012 - 10:09 | 2517757 EL INDIO
EL INDIO's picture



1-4% margin only !


Does that mean they allowed 100X leverage and now they reduced it to 25X ? !

Tue, 06/12/2012 - 10:09 | 2517758 GMadScientist
GMadScientist's picture

We need more sandbags! If we don't prepare for the Gresham flood, we'll be soaked!


Tue, 06/12/2012 - 10:10 | 2517768 Satan
Satan's picture

Lol...Saxo is the counter party to their clients( muppets) spot fx trades. Looks like they gonna make a nice little windfall as positions get screwed...

Tue, 06/12/2012 - 10:14 | 2517785 Dan The Man
Dan The Man's picture

is that Goldmano Saxo?

Tue, 06/12/2012 - 10:14 | 2517786 PaperBear
PaperBear's picture

Now fiat FX gets the same treatment that gold and silver got during May 2011.

Tue, 06/12/2012 - 10:20 | 2517811 lolmao500
lolmao500's picture

Stocks are high on kool aid... so are treasuries (in the UK, US and France)

Tue, 06/12/2012 - 10:31 | 2517847 sockratte
sockratte's picture

i also have some providers, who increased margin almost tenfold i think, mainly for european banks. ,-)

Tue, 06/12/2012 - 10:34 | 2517858 eddiebe
eddiebe's picture

Could it really be? Fractional reserve is starting to feel the strain of mistrust. 400% worth. Soon it will take 1000's of % to get suckers to bite.

Tue, 06/12/2012 - 10:38 | 2517882 Pretorian
Pretorian's picture

Does SAXO bank still practicing short naked with adequate capita?


Tue, 06/12/2012 - 10:50 | 2517928 Broccoli
Broccoli's picture

Who else is shocked that there was ever a 1-2% margin? 100x or 50x leverage! 25x leverage is still insane. At 100x leverage I would think trading fees alone would eventually wipe out your balance.

Then again I graduated from Rice not Harvard so they obviously know better than me and aren't just psychopath gamblers, obviously.

Tue, 06/12/2012 - 10:51 | 2517934 _underscore
_underscore's picture

Saxo Bank is going to get stuffed.

Tue, 06/12/2012 - 10:54 | 2517954 tomAsss
tomAsss's picture

tighten your seatbelts

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