Complaint Matter

Mr. XXX has lodged his complaint with Financial Commission on the following grounds:

The client claims that Broker (Company) has made a deletion/restoration of a series of closed EURRUB transactions on his account in accordance with paragraph 9.9 and 9.22 of the «Terms of Business» with a formulation “non-market quotes”.

In client’s opinion, the Company is trying to represent these quotes as a technical failure in violation of paragraph 16.1 b of the “Client Agreement”, namely, changing trading conditions retroactively when the benefit of these terms was recorded on the client’s account.

The client admits that the Company offers more advantageous trading conditions than the competitors what allowed him to gain a profit on a high-volatility market, however, he believes that any technical failures or non-market quotes did not take place during the reporting period.

In his own defense the client provides the following arguments:

1. The case does not fall under the last condition of paragraph 10.1 of the “Terms of Business” referred to by the Company. According to the paragraph 10.1 of the “Terms of Business” non-market quotes or spike is an error quote with the following characteristics:

a) a significant price gap;

b) a price rebound in a short time period within a price gap;

c) no prior rapid price fluctuation before the spike;

d) no released macroeconomic indicators and/or corporate reports that could influence the price.

2. In client’s opinion an example of non-market quotes provided by the Company’s on its website has nothing to do with the EURRUB quotes in the reporting period.

3. The client has provided a screenshots of the tick charts on EURRUB currency pair of other companies where such high-volatility quotes were registered.

Consequently, the client demands restoration of the trading history by the time of market closing on the 7th of November 2014 or monetary reimbursement in the amount of 4742.62 USD without restoration of the trading history.

Complainant Broker
XXX YYY
Financial Commission Complaint #ZZZ
Complaint Raising Date Complaint Filing Date
15/11/2014 1/12/2014
Complaint Response:

The decision for this complaint is based on the information provided by Mr. XXX and Broker YYY and the analysis of the market situation of the EURRUB instrument in the given time period.

1) In the reported period Russian Ruble was very unstable, the market experienced increased volatility and low liquidity. In such cases any news or activities of the Central Bank or any other large participant of the market may lead to big price fluctuations;

2) The client did not change his trading strategy during the reported period and did not try to deceive the Company. According to the Company’s report it could be seen that the client has never shown an aggressive trading behavior and also, that the client has never changed his trading strategy in the similar conditions;

3) The Company should not change the trading conditions retroactively and should consider possible rate fluctuations of the RUB instruments. Closing of the profitable transactions in non-liquid time cannot be regarded as a reason to refuse client in a payment;

4) The Company has enough tools to limit its risks when trading during the hours of low liquidity, especially for instruments that are generally low liquid. In particular, to make a special set of rules for such instruments;

Based on the above information the Dispute Resolution Committee considers the client’s complaint reasonable and believes that the Company must satisfy it.

This complaint was reviewed by the members of the Dispute Resolution Committee of the Financial Commission and was processed by the Head of the Committee.

Ruled in Favor Compensation
Client $ 4742.62
If you have any questions regarding this investigation, please send them to the following address info@financialcommission.org
Acknowledgement
I certify that all information was considered by the Dispute Resolution Committee of the Financial Commission and hereby confirm that the decision was made fairly, impartially and without interference. I am confident that the information provided in the document is true.
Signature Designation Date

Head of DRC

1/12/2014