FCA asks prop traders about capital impact of sterling fall
Regulator seeks information on currency make-up of capital base, and capital adequacy
The UK Financial Conduct Authority (FCA) has asked some proprietary trading firms it supervises to report their capital levels as of June 24 – the day after the country held its referendum on membership of the EU – to assess the impact of sterling's collapse on capital adequacy.
The June 24 move in sterling was its biggest one-day fall against the US dollar in more than 30 years, and could have seen the size of trading firms' exposures ballooning when expressed in sterling.
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