Customer Complaint Dated January 22, 2015

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Complaint Matter

Mr. XXX claims on January 15th he was stopped out of his two positions in EURCHF at prices that were inconsistent with the market. Following the SNB announcement there was extreme volatility in the swiss franc which appreciated substantially against the Euro and other currencies. Despite the sharp drop in EURCHF Mr XXX’s 2 short positions or 0.01 lots in the pair were stopped out by a ‘non market spike’ to the upside with quotes as high as 1.33 following the announcement from a level of around 1.20. Mr XXX mentions that not only was he stopped out at prices that he mentions were totally inconsistent with the market but he missed the opportunity to benefit from the large subsequent drop in prices. He contacted the broker whom initially responded and refused his proposal to be closed by actual market prices at the time which he claims were closer to 0.85 at the time. When asked by the Commission if he received any compensation from the company Mr XXX confirmed he received his ‘deposit’ back from the company.
Mr XXX is claiming his two positions be closed out at 0.85 and the reopening of his two pamm accounts (which were closed) enabling him to trade or withdraw funds.
Mr XXX provided his pamm accounts position statements and chart information.

Complainant Broker
XXX YYY
Financial Commission Complaint #ZZZ
Complaint Raising Date Complaint Filing Date
1/15/2015 1/22/2015
Complaint Response

The company’s response confirms the extreme volatility that was created at the time by the SNB announcement. They mention at the time their specialists detected a ‘spike’ topping 1.3269 on two servers which was confirmed as to price and volume by their liquidity provider. The company asserts their hedge trades were not corrected or cancelled despite their attempts to do so. Nevertheless the company proceeded to correct the MT4 charts and decided to compensate its clients the losses caused by these prices. Mr XXX‘s accounts were indemnified with Usd 85.12 and Eur 61.13. He was duly notified.

The decision for this complaint is based on the information provided by Mr XXX and Broker. Summarising all the above the Dispute Resolution Committee found in favour of Mr XXX. The committee found that the upward ‘spike’ following the announcement by the SNB was not consistent with acceptable market prices and noted the steps the company took to indemnify the client. The Committee also found that the client should receive a form of fair compensation further than that already provided to reflect his missed opportunity. The Committee recognised the technical issue the company may have had in its decision for the company to award further compensation to the client. However, the Committee does not believe that the company must be responsible for all hypothetical income that the client could possibly make based on historical data.

Ruled in Favor Compensation
Client Broker member decision
If you have any questions regarding this investigation, please send them to the following address contact@financialcommission.com.co
Acknowledgement
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

 02/24/2015
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