How Did Scrapping the Swiss Franc Cap Affect Global Markets?

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SUMMARY

On January 15, 2015, the Swiss National Bank (SNB) unexpectedly scrapped its cap on the Swiss franc (CHF) against the euro, resulting in a dramatic 30% surge in the CHF's value. This decision triggered significant volatility in global markets, affecting bonds and currencies and raising concerns about the overall economic landscape. The move led to severe repercussions for financial institutions, including a U.S. brokerage facing compliance issues and a New Zealand dealer going out of business due to client debts. The Swiss franc, now the sixth most-traded currency, is increasingly viewed as a safe haven amid European economic instability.

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http://www.wsj.com/articles/switzerland-scraps-currency-cap-1421320531
Switzerland’s central bank triggered turmoil in the markets Thursday when it unexpectedly scrapped its cap on the Swiss franc’s exchange rate against the euro, a move that unleashed new volatility among bonds and currencies around the world and further underscored growing concerns about global economic prospects.

http://www.bloomberg.com/news/2015-...roker-closes-on-losses-after-swiss-shock.html
Casualties mounted from the Swiss currency shock as a U.S. online brokerage said client debts threatened to push it out of compliance with capital rules and a New Zealand-based dealer went out of business.

A news report about the NZ based dealer going out of business is available - http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11387361
 
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The Swiss Franc is the sixth most-traded currency on the planet, and it exploded in value this morning by 15 percent.
http://www.marketplace.org/topics/world/swiss-national-bank-gives-ghost

Swiss franc jumps 30 percent after Swiss National Bank dumps euro ceiling
http://www.reuters.com/article/2015/01/15/us-markets-franc-idUSKBN0KO16Y20150115
(Reuters) - Switzerland's franc soared by almost 30 percent in value against the euro on Thursday after the Swiss National Bank abandoned its three-year old cap at 1.20 francs per euro.

Apparently the Swiss government printed about 500 billion francs in 2011- and when the Euro gets in trouble, people buy Swiss francs.

It's nice to be wanted.
 
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People call the CHF the "Euro without Greece".
 
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