Customer Complaint Dated November 28, 2014

The Financial Commission / Ejemplos de casos / Customer Complaint Dated November 28, 2014

Complaint Matter 

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

The client claims his positions in USDRUB were closed out (stopped out) at a price that was’ non-market’ on November 28th. The client notes that the spread expansion was asymmetrical and affecting the offered side of the market adversely impacting his short positions. Also that other ‘non market quotes’ provided by the brokerage were filtered out with the exception of the one that caused his positions to be stopped out. The client is claiming USD1,434.81 as compensation for the loss.

Complainant Broker
Financial Commission Complaint #XXX
Complaint Raising Date Complaint Filing Date
11/28/2014 12/18/2014
Complaint Response

The company provided tick data for the said date when the client positions were stopped out maintaining that due to increased volatility spread increases for USDRUB occurred on several occasions that day. The company states that under normal conditions spreads are stable but the ‘dramatic’ increase in volatility caused spreads to widen from their liquidity providers which was reflected in their pricing. The company also offered the client a different choice of account with different conditions and fixed spreads.

Decision on this complaint is based on the information provided by Company and by the Client.

Summarizing all above the Dispute Resolution Committee found in favour of the client as the stop out price achieved on the day was not consistent with market prices overall despite the increased volatility.

This complaint was considered by members of the Dispute Resolution Committee  and framed by the Head of the Committee.

Ruling in favor Compensation
Client $1,434.81
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

Head of DRC



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