Foreign exchange broker Alpari UK has entered insolvency following market turmoil over Switzerland's shock decision to unpeg its currency from the euro.
Within minutes of the early morning announcement on Thursday, the currency spiked around a third against the single European currency and the dollar while Swiss shares tanked more than 8%, prompting confusion and anger across trading room floors.
The move was seen as a bid by Switzerland's central bank to prepare the ground for quantitative easing in the eurozone - expected to be announced next week in an attempt to halt a slide towards deflation and boost economic activity.
Alpari is understood to have more than 200,000 clients and it said the majority had sustained losses.
It was not the only brokerage to take a massive financial hit in the wake of the turmoil with another firm in New Zealand also going out of business.
At the time of the market meltdown, Alpari's chief market strategist had declared the Swiss action "completely irresponsible" given recent support for the peg by the central bank.
Alpari said today: "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.
"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."
The currency peg, which was introduced in September 2011, was an attempt to halt the rise of the franc against the euro at a time when the eurozone debt crisis was at its height.
The strong franc was then particularly problematic for Swiss exporters, who were forced to drastically cut prices to remain competitive.
In an effort to contain the franc's future appreciation and limit any damage to the Swiss economy, the central bank also lowered a key interest rate to -0.75 to dissuade banks from parking their cash at the national bank, opting instead to invest in the Swiss economy.
West Ham, which signed its shirt sponsorship deal with Alpari UK two years ago, refused to comment on the company's financial woes.
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