Mr. XXX has lodged his complaint with Financial Commission on the following grounds:
The Client used account #XXXXX for trading operations in the Forex and CFD markets. The incident occurred on 29.04.2016 shortly before the end of the US trading session on Friday. By the time of the incident, the client established a SHORT position in USDJPY:
27464405 29.04.2016 18:00 sell 15 usdjpy 106.894 107.453 0.000
According to the Client, he placed his Stop Loss order at 107.453 price level, however, the Take Profit order was not set, because the trade was under his full control. After a short period of time, the client’s position was closed by Stop Loss order with a slippage of several points.
The client does not agree with the actions of the Broker and believes that his position was closed at the non-market price. This follows from a comparison of USDJPY price graph in the platform of the Broker with the similar price graphs of other financial services providers.
The client considers the actions of the Broker as unfair and requires:
– to recover funds lost due to improper closing of the short position ($8469.69);
– to compensate for unrealized gains on closed position in the amount of $26150.
For its part, the Broker believes that the Client’s complaint has no ground because his order was executed at real market prices. In support of his decision, the Broker provided the investigation with the server log records and the screenshot of the 1m chart of the instrument.
In addition to the above, the Broker refers to the paragraph XX.XX of the Terms of Business, according to which “The Trading Server of the Broker is the only reliable source of quotations, by which any relationship between both Sides arising from the Customer Agreement, the Terms of Business and other documents of the Company will be governed.”
|Financial Commission Complaint||#ZZZ|
|Complaint Raising Date||Complaint Filing Date|
The decision for this complaint is based on the information provided by Mr. XXX and Broker YYY. In order to investigate the incident and to make an objective decision on the complaint, the Dispute Resolution Committee of the Financial Commission closely examined the price dynamics of USDJPY in the period before and after the incident.After a comprehensive analysis of the market situation in the USDJPY instrument at the time of the incident, the Committee concluded that there were non-market prices in the quote feed of the Broker.
Thus, the Committee considers that the transaction, which resulted in a Stop Loss order execution, should be canceled. Broker must compensate the losses incurred in a transaction # 27464405 in full ($ 8469.69).
As for the customer’s requirements on partial or full reimbursement of the amount of unrealized profit, which was lost because of Broker’s misconduct, the Committee considers that this is not acceptable, because the Client did not indicate his intentions with respect to his open position, and it cannot be assumed what kind of actions he would take in relation to his position otherwise.
In addition, the Committee members consider unacceptable the restoration of the Customer’s position after a long period of time, and in connection with the inability to initiate the trade at the original price.
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|
|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.|
Head of DRC