Alpari has filed for insolvency after the majority of the retail currency broker’s clients sustained losses brought about by the Swiss National Bank’s (SNB) decision to scrap the Swiss franc’s currency cap against the euro.

The value of the Swiss franc has been capped at 1.20 per euro for the past three years, but the SNB’s decision to abandon the policy on Thursday saw the franc, at one point, soar by over 40 per cent against the euro.

“The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity,” said Alpari in a statement on Friday. “This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us. This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.”