Broker-Dealers ETF Vulernable After Swiss Shake-Up

Goldman Sachs (NYSE: GS) was also stopped out of one of its key trading ideas for 2015, selling the Swiss franc against the Swedish krona, the Wall Street Journal reported in November. GS makes up 9.4% of IAI.

Due to the SNB’s long-holding cap against the euro currency, many currency traders have maintained bearish bets on further declines in the franc currency.

“Selling puts or vol on the franc was deemed to be SNB guaranteed money for old rope,” Anthony Peters, a broker at Swiss Investment Corp., said in a note. “There will be some very red faces around as it begins to transpire who should not have been playing that game.”

iShares US Broker-Dealers ETF

For more information on brokerage firms, visit our broker-dealers category.