Saxo Bank hikes margin requirements on the Swiss franc, believing recent developments in Europe...

Saxo Bank hikes margin requirements on the Swiss franc, believing recent developments in Europe could lead to a break in the SNB's CHF 1.20 floor vs. the euro. With the whole world short francs, any piercing of 1.20 could lead to a fairly rapid appreciation the swissie.

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Comments (6)
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
    Breaking 1.20 can only happen if the SNB wants it to happen:


    The Swiss National Bank Is Big Enough To Maintain The CHF/EUR Rate
    12 Jun 2012, 09:45 AM Reply Like
  • remurraymd
    , contributor
    Comments (2274) | Send Message
    Agree from personal experience in Geneva Zurich Bern deepest pockets most gold reserves SNB. We do not shoot against them.
    They must do this to keep markets competitive they will not stop,
    Last traders to break a big national bank Quantum fund Jim Rogers
    and George Soros broke the bank of England in the 90s very unusual. Never seen it in Switzerland in 45 years of investing.
    12 Jun 2012, 11:15 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
    In this case SNB is unbreakable. Look at the article I linked to above.
    12 Jun 2012, 11:16 AM Reply Like
  • g saint
    , contributor
    Comments (3) | Send Message
    what is brittle, must break...
    12 Jun 2012, 04:29 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
    Nothing is unbreakable, not even the Titanic. BUT, reserve wise, the exchange is wise in raising margins. Like a bank looking at a company not performing, they too raise the ante for new loans. It was the loose lending policies that got us in the financial mess we are in the first place. Then spending the money was totally mishandled etc. on and on ad nauseum.


    Some how or other, we will have to get back to saner policies regarding money.




    Capt. Brian
    The Lost Navigator
    12 Jun 2012, 05:56 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
    Brian, this particular instance indeed is unbreakable. Read my article. SNB is in a position where to defend their barrier, they need to print CHF. They can print as many as they wish, so the barrier can only be broken if SNB decides to let it break.
    12 Jun 2012, 06:29 PM Reply Like
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