Thanks to Suzy Star and others
Stephen: OK, there are two different stories here – but they could very well be linked.
The first one, involving currency trader OANDA (see company description below) putting a halt on trading this Sunday June 17, IS legitimate.
In explaining the company’s coming trading halt, its own corporate announcement mentions “uncertainty in Europe”. Source: www.oanda.com.
Well, we already know there is a Greek election this Sunday and that Spain, Portugal, Italy and others are in deep financial trouble, don’t ‘we? In fact, the world does!
The second is a rumour that the Euro has secretly crashed
- even before the Greek vote.This “news” is contained in a letter from someone called “V” (not the TV series, I hope!) addressed to controversial radio host Steve/Stephen Quayle of Survive to Thrive, and which Quayle has posted on his site: www.stevequayle.com on June14, 2012.
That letter is also below, but I cannot verify the validity of it.
But the two COULD be linked. Or it could be coincidental. The runour may be just that – a rumour. That’s all I am saying here…
For those who may not know, OANDA is a company which uses innovative computer and financial technology to provide Internet-based forex trading and currency information services to everyone, from individuals to large corporations, from portfolio managers to financial institutions. OANDA is a market maker and a trusted source for currency data.
It has access to one of the world’s largest historical, high frequency, filtered currency databases.
Their motto is “Currency Trading Should Be Fair”. The statement below is from Tony Savor, who is responsible for the engineering and operations for OANDA’s platforms.
OANDA: Reasons Behind Our Sunday Trading Halt
http://www.oanda.com/corp/oandainsights/2012/jun/14/reasons-behind-our-sunday-trading-halt-55514120/
OANDA will halt trading this Sunday, June 17, from 6:00 AM EDT until approximately 3:00 PM EDT. I would like to further explain OANDA’s reasoning for this action.
First off, OANDA is the only forex provider that permits off-market, weekend trading. In truth, volumes during the weekend are much lower than typical trading days, but OANDA has made this available as a service for its clients rather than an opportunity to increase corporate revenues.
The decision to halt trading is very much tied to the uncertainty in Europe and in particular, the Greek election. Given these events, there is the potential for extreme exchange rate volatility at a time when global currency markets are closed. OANDA’s concern is that exchange rates could undergo significant fluctuations as the exit polls are being made public. If these fluctuations are wide enough, accounts that under normal conditions would be considered well-capitalized, could become subject to a margin call.
By halting trading and holding the closing prices steady during this period, we aim to shelter traders from the potential for price spikes. Of course, once trading resumes, new market rates will come into effect and while the hope is that prices will have settled by this time, some accounts may still face the risk of a margin call.
This is why we have issued a warning recommending that traders reduce positions if they determine they are vulnerable from a margin perspective. At the very least, all traders should review their accounts prior to the weekend and ensure they have sufficient capital to prevent a margin call when trading resumes at the new market price.
On a final note, anyone with open positions during this time, regardless of their choice of forex broker, is at risk when exchange rates reset upon the resumption of trading. Yes, sending out this message is to inform our traders of the trading halt, but it is first and foremost intended to inform the investing community of the potential volatility in the coming days and to provide sufficient time to make any necessary adjustments.
Posted by Tonysavor <http://www.oanda.com/corp/oandainsights/author/TonySavor> / Jun 14
OANDA also sent this correspondence out, although I am not sure who to:
Due to the extreme volatility some market analysts foresee could result in the coming days, OANDA fxTrade will not accept any trading activity from 6:00 AM EST until approximately 3:00 PM EST, on Sunday, June 17, 2012. OANDA believes the convergence of a major market event during off-market hours represents a potential trading risk and has taken this rare step to protect traders from excessive rate fluctuations.
Please note that during this halt in trading, you can still access your account details but no trading activity will be accepted. For this reason, OANDA strongly recommends that all traders consider minimizing currency exposures prior to the trading halt.
If you do intend to maintain open positions during this period, be aware that OANDA will hold exchange rates steady during the trading halt. However, when trading resumes, rates will immediately adjust to the current market rate and it is possible that the updated rate could result in a margin closeout if the price has moved significantly against your positions.
Therefore, it is your responsibility to ensure you have adequate funds in your account to prevent a margin closeout.
OANDA apologizes for any inconvenience this may cause.
For more information, please contact a Customer Service representative.
Best regards,
The OANDA team
Euro Has Collapsed
From http://www.stevequayle.com/
Euro Has Collapsed!
June 14, 2012
It is with trepidation that I write to you….The Euro has collapsed unofficially. The money is OUT of Greece, Spain, Portugal, Ireland, Italy, France, Belgium and the German Elites have begun to shore up their wealth in hard assets and precious metals. RBS has given orders to close two of their major equities sectors, thousands of jobs are going to be lost the next few days/weeks. Credit Sussie has called on top investors to head to Swiss safe harbor and hard asset diversified portfolios.
The Capital Controls are in place to keep the charade of control going for the next four to six months before the official collapse. Steve…this is it. The Euro has collapsed and no one has noticed it. Greek bank runs are close to $3.5 Billion Euros per day not the $1 Billion that is being reported. The rest of the PIIGS are in the same boat. Bank Holiday imminent in all of continental Europe in the coming days and weeks. This is again theatrics to keep the plebeians believing in some semblance of control.
Please warn your listeners to pull out of their bank accounts everything that they need. Keep only to pay the day to day expenses. If they have land to go to, please do so now. Steve I do not know how much longer I can keep writing to you. You were knocked off line during your show with the Haggmans right before your were going to divulge what I have told you with the Spanish bailout. It is getting dangerous for all of now.
Again the Euro has collapsed…I repeat the Euro has collapsed. Unofficially.
May God Help Us All….
V
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