IB loses $120M from Swiss currency move

That's why many brokers will probably raise the margins a lot. I remember it happened already one time in the futures market too. I think it was around 1995. Margins should cover potential risk and guarantee correct execution of trades. But how much margin will be enough?

 

Black swans do exist. I did not know that until I saw them myself.

 

As IB is self-clearing (futures), did they internalize the risk of something like this happening? If IB used an external clearing firm, would IB be on the hook or would the clearing firm?

 

NFA raised already the first margins (or lower the leverage) as I predicted.