June 9th 2021, The Financial Commission today announces significant increases in key metrics, including new complaints filed, amounts sought and awarded in May 2021 as part of its monthly Complaints Digest. The organization also experienced a further spike in trading related complaints while average dispute resolution times increased to 7.2 days for the month.
Key monthly highlights for May 2021:
- New monthly complaints up 46% to 172
- Resolved complaints increased to 150 or 15% MoM
- Compensation sought by traders doubled to $1,406,830
- Compensation awarded to traders quadrupled to $21,138
- Trading related complaints increased by 75%
- The average resolution time increased to 7.2 days
Month Over Month Comparison
- The Commission experienced a significant upswing in newly filed complaints for May with 172 complaints filed
- The amount of compensation sought by traders more than doubled in May to $1,406,830, a 123% increase Mom
- The total amount awarded to traders quadrupled from April to May to $21,138
- The average value of complaints filed in May was 4% higher than April at $8,179
- Complaints in May were resolved in 7.2 days on average, evidencing a 29% slowdown month over month
Continued massive demand for trading on global markets, including digital currencies and derivatives, continues to drive the external dispute resolution services (EDR), as highlighted by several key metrics of the Financial Commission for the previous month. Increases across the board in new filed and resolved complaints amounts sought and awarded to traders, as well as average complaint values, suggest more traders are taking on substantial risks in their trading sizes as they try and take advantage of market opportunities. Roughly 32% of all new complaints filed with the Dispute Resolution Committee (DRC) in May were valued between $1,000-$10K+, highlighting the continued importance of the organization to investigate complaints with a significant monetary value. During the month, the DRC was able to resolve 15% more cases than in April, with average resolution times rising by 29% to a still manageable 7.2 days.
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].