January 16th 2023, The Financial Commission today announces increases in several key metrics, including amounts sought from broker members and average complaint values, as well as rise in trading-related complaints as part of its quarterly Complaints Digest. The organization experienced a slowdown in new and resolved complaints, amounts sought from non-member brokers and complaints ruled in favor of traders in the 4th quarter of the year.
Key highlights for 4Q vs. 3Q 2022:
- New filed complaints dropped by 38%
- Compensation sought from member brokers shot up by 66%
- Compensation awarded decreased 23% to $60,919
- Average complaint values up 55% to $6,601
- Average resolution time slowed to 6.1 days
Quarter Over Quarter Comparison
- Slowdown in complaints as winter holidays approached
- Compensation sought from all brokers down slightly to $3,333,684
- Rulings in favor of clients down slightly by 2%
- Trading-related complaints rose 5%
- Complaints resolution times slowed by 33%
Range bound forex and derivatives prices, as well as winter holidays impacted several key metrics of the Financial Commission in the final quarter of 2022. Slowdowns in filed and resolved complaints, as well as compensation sought suggest traders may be finding less opportunities on traditional markets in light of range bound price fluctuations or simply forwent trading at the end of the year. In 4Q 2022 the organization also experienced a drop in most amounts sought metrics, except those attributed to members. There was a noticeable change in the complaints topics for the period, with trading-related complaints rising 5% month-over-month despite the general drop in new complaints for the quarter. Complaints listed in the value category $1-10K and $10K+ increased their overall share of complaints 5%, highlighting the continued importance of the organization to investigate complaints with higher monetary values. During the quarter, the Dispute Resolution Committee (DRC) managed to accumulate less complaint investigations carrying over into the New Year, as compared to 3Q, while experiencing a rise in already exceptional average resolution times, which still continue to outpace alternative EDR services.
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].