07 October, AtoZForex.com, Amsterdam — Today, the UK Financial Ombudsman has disclosed interesting news upon IG Group Holdings plc (LON:IGG). The update by the Financial Ombudsman involves finally the outcome of the long-awaited client case against one of UK’s major brokers. The case surrounding the global leader in online trading relates back the horrid Swiss franc Black Swan event earlier this year.
From AtoZ’s reports days after the SNB event, it was already made clear that the major UK broker suffered largely from the horrid occurrence. Back then, IG reported to endure losses close to £30 million, as the firm released the following update publicly:
“IG Group Holdings plc believes it is appropriate to provide an update on the negative financial impact to the Group. The precise level of the impact will be partially dependent on the Company’s ability to recover client debts, but in total it will not exceed £30 million, from market and credit exposure.”
Complaints of low fill rates
Relating back the client case, the Financial Ombudsman has ruled IG to adjust the fill rates of its clients upon their CHF trades for the 15th of January. The first appeal of the case came after an IG client complained publicly that IG’s fill rate in the aftermath of the SNB event for the EUR/CHF could have been much better.
More followed, as the unsettled clients of IG Group Holdings prompted to complain upon the fill rates at which their CHF trades were executed during the occurrence. In fact, the brokerage provided the rate of 0.9250 for the EURCHF pair. A rate that was much lower in comparison to the retail competitors of IG Group. Some of which, was reported to initiated filling client orders at a rate above the 1.1200 level.
IG reprices CHF trades after FOS ruling
Now, with the U.K. Financial Ombudsman Service’s ruling in favor for the clients of IG, the UK major broker needs re-price all of the CHF trades for its clients on the SNB Black Thursday. Resulting to the additional financial loss of close to £1 million for the IG Group, marking an even greater loss for the SNB casualty.
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