The FinancialNovember 16th, 2020, The Financial Commission announces a significant rise in its operating metrics for the month of October 2020 as part of its monthly Complaints Digest. The organization recorded a significant uptick in newly filed complaints for the month while experiencing growth in compensation awarded to traders, the compensation sought, and several other key metrics while achieving an average dispute resolution time of just 7.8 days.
Key monthly highlights for October 2020:
- New complaints up 55% to 146 total complaints filed
- Resolved complaints up 30% to 132 total
- Total amount awarded to traders up 31% MoM to $83,016
- Non-member compensation sought tripled to $142,473
- Average resolution time decreased by 12% to 7.8 days
Month Over Month Comparison
Key Takeaways
- The Commission experienced a significant jump in newly filed complaints for October 2020 to 142, which represents a 55% boost from September
- The amount of compensation sought by traders was slightly less in October at $615,887, which is a decrease of just 2.7% from September
- The total amount awarded to traders jumped again to $83,016 which is an increase of 31% MoM
- The average value of complaints filed in October was 0.5% higher than September at $4,411
- Complaints in October were resolved in 7.8 days on average, which is a slight improvement of 12% from the previous 8.9 days in September
Conclusions
As slow summer months have come and gone with Covid-19 global impacts and US elections continuing to influence market prices, the Financial Commission experienced a resurgence of complaints and requests for compensation in disputes from traders. The increased trader activity in global markets, including equities and Contracts for Difference (CFD) had increased the demand for dispute resolution services, as highlighted by the improvements in several key metrics, including new complaints filed, amounts sought and amounts awarded. While financial-related complaints continued to dominate, trading related complaints experienced a 20% rise month over month, suggesting investors are back to finding trading opportunities following a summer lull. At the same time, the Dispute Resolution Committee (DRC) was able to rule a significantly higher number of complaints in favor of clients in October, as the month over month total jumped 90% to 42 complaints from 22 in September.
About Financial Commission
Founded in 2013, the Financial Commission is a leading independent member-driven external dispute resolution (EDR) organization for international online brokerages, exchanges, and Blockchain firms that participate in global foreign exchange (forex), derivatives, CFD, and digital asset markets.
The Financial Commission provides efficient compliance solutions to its members, alongside its External Dispute Resolution (EDR) mechanism that serves as an effective channel for processing complaints from clients of member firms.
For more information please contact us at [email protected].