High Court Judge Adrian Beltrami QC dismissed the lawsuit that Target Rich International Ltd had filed against Forex Capital Markets Limited (FXCM) on the Swiss franc’s move in 2015. Target Rich International was seeking to recover the loss of $591,000 from FXCM.
23 June, 2020 | AtoZ Markets – FXCM is an FX and CFD broker. It provides several trading platforms such as MetaTrader 4, Trading Station, Ninja Trader and Zulu Trade. FXCM also provides more than 35 Forex currency pairs, CFDs, index, Gold, Silver, Crude Oil, Bitcoin and other cryptocurrencies. According to its websites, the broker stated:
“FXCM is a global leader in the provision of forex and CFD market access. If you are an active trader or a newcomer anxious to get started, our award-winning service suite stands ready to help you achieve your goals in the marketplace.”
Target Rich International Ltd sues FXCM about a four-year-old Swiss franc flash crash. Target Rich was seeking all documents supporting the claim that FXCM failed to execute stop-loss order (SLO). It incurred a loss of $591,000 in the process. According to the court document, FXCM did not execute the stop-loss order, which limits the loss to $100,000.
Target Rich International Loses Lawsuit Against FXCM
Judge Adrian Bertramy QC dismissed the FXCM lawsuit on Monday. According to the judge, the trading platform had the right to void the automatic buy and sell orders during the exceptional market event. FXCM is not negligent or breaching its contract with Target Rich International by failing to comply with “stop-loss” orders placed by investors.
“SLO imposed an obligation on FXCM to take its own position at the stop-loss price, and so engage in a substantively different sort of business, namely as a market maker, whether or not the corresponding price was available in the market. There is nothing at all in the contractual documents to support such a case.”
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