Customer Complaint Dated September 6, 2017

The Financial Commission / Case Examples / Customer Complaint Dated September 6, 2017

Complaint Matter

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

The Client used account # XXXXX (ECN.MT5) for trading operations on the Forex market. The incident occurred on September 6, 2017, at 17:00 (server time), at the time of publication of Canada’s Central Bank decision on the key rate. At the indicated time, the Client carried out the following trading operations:

     Order                     Time                Type     Vol     Symbol      Price    

1003212185   |06.09.2017 17:00:00|   sell   |   2   |   usdcad   |1.24068

1003212836   |06.09.2017 17:00:07|   buy  |   2   |   usdcad   |1.21502

According to the Client, within a few hours after executing above-mentioned operations, the Broker canceled all financial results of the transactions, based on the fact that “the liquidity provider did not confirm the positions on prices set from 17:00:00 to 17:00:08 (according to the time of the server EET ). As a result, the Company made a clear mistake (the definition is set out in clause 10.2 of the Terms of Business) while processing orders for opening and closing of these positions. Thus, the financial results of trading operations on USDCAD and EURCAD instruments were canceled by setting out a separate balance sheet posting.”

The cancellation of the disputed transaction financial result was recorded in the history of trading operations on the Client’s trading account:

       Order                            Time                                          Type           Profit

1002343521|06.09.2017  22:05:00|balance | Indemnification Balance|-4223.8

1002350708|07.09.2017  15:22:00|balance | Indemnification Balance|3.2

In the Client’s opinion, the Company’s actions to annul the financial results of the disputed transaction are unlawful according to the Terms of Business for ECN accounts, which state that if the Company is not able to hedge the transaction with the liquidity provider due to the absence of prices provided by the latter, the transaction must not be opened. In the Client’s opinion, in this situation, the Company has violated its own rules (Clause 3.5. A Client Instruction to open a position shall be deemed executed and the position shall be open once the relevant record appears in the Server Log-File).

In connection with the aforementioned, the Client asks Dispute Resolution Committee to verify the correctness of transactions execution and requires Broker to make a refund in the amount of $ 4223.8.

For its part, the Broker believes that the Client’s complaint has no grounds and transactions have been canceled in accordance with the provisions of the regulatory documents. The broker refers to clause 9.2 of the Terms of Business for ECN accounts: ““Manifest Error” shall mean an error by the Company who opens/closes a position or executes an order at the price which significantly differs from the price for this Instrument in the quote flow at the moment of taking this action, or any other action taken by the Company regarding prices which are significantly different from the market prices”.

Complainant Broker
Financial Commission Complaint #ZZZ
Complaint Raising Date Complaint Filing Date
06/09/2017 07/09/2017
Complaint response:

The decision for this complaint is based on the information provided by the Client and the Broker.

To ensure an objective investigation of the incident, the Dispute Resolution Committee of the Financial Commission closely examined the documentary evidence provided by the parties to the dispute. Having analyzed the materials of the complaint, the Dispute Resolution Committee has come to the following conclusions:

Transactions disputed by the Client were checked by the DRC to ensure that transactions execution prices match with real market prices. To ensure an objective investigation, the DRC requested a history of quotations for a financial instrument of disputed transactions from several different financial providers. Checking the history of tick data showed that the disputed transactions were executed at real market prices relevant at the time of the incident.

Based on the aforementioned, in DRC Members opinion, the Broker has no reasons to cancel the transactions disputed by the Client since all disputed transactions were recognized by the Committee’s experts as legitimate and the execution was correct.

Based on the above information the Dispute Resolution Committee considers the Client’s complaint reasonable and believes that the Broker must satisfy it and refund Client’s financial results in the amount of $4223.8.

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 $ 4223.8
If you have any questions regarding this investigation, please send them to the following address [email protected]
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
 Anatoly Bulanov

Head of DRC



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