Alpari UK, one of the largest players in a sector that focuses on small-scale investors trading for their own account, said it had applied for insolvency after suffering huge losses when the cap on the Swiss franc against the euro was scrapped.
Meanwhile, Alpari founder and co-owner Andrey Dashin's other Cyprus-based retail brokerage, forextime.com or FXTM, said it wanted to announce that the franc's sudden jump had no "major impact" on its business.
"A solid risk management policy has always been in place to safeguard the Company and its clients against situations like this," FXTM said in a post on its web and LinkedIn pages.
"All losses have been absorbed and our clients' funds remain protected. Any negative balances which have arisen are in the process of being corrected and business will continue as usual."
FXTM had no immediate comment on Dashin's role in the two companies, or whether some of Alpari's clients or business might move or be sold to the second company. A spokesman said Dashin was not immediately available for comment.
Both are Cyprus-based, although at least one of the companies carrying the Alpari name was officially authorised and regulated by the Financial Conduct Authority.
Dashin's personal website lists him as "the Chairman of the Board of Directors and co-owner of the Alpari brand, founder of ForexTime (FXTM)". Company filings from Cyprus list him as a former shareholder and director of the Cyprus-based company that owns Alpari UK.
(Reporting by Patrick Graham and Tom Bergin; Editing by Larry King)
