Hong Kong Sfc Levies Hk$4 I G One Thousand Penalization On Hk Fxcm For Asymmetric Slippage On Clients' Forex Trades

The Hong Kong Securities as well as Futures Commission (SFC) has fined FXCM Asia Limited (HK FXCM) HK$4 i chiliad one thousand for asymmetric slippage of customers' FX orders betwixt Dec 2006 as well as Dec 2010.

An investigation past times the SFC establish that HK FXCM netted US$1.4 i chiliad one thousand inward profits over a four-year catamenia from unfairly executing customers’ forex trades.

“During the Relevant Period, a full of US$1,452,926.69 Positive Slippage was retained past times the FXCM Group including HK FXCM.“

According to the Statement of Disciplinary Action, HK FXCM operated a no dealing desk (NDD) model, however, when the trouble solid executed FX trades on behalf of clients alongside external liquidity providers, “FXCM Group including HK FXCM kept the Positive Slippage which is the divergence betwixt the master requested toll as well as the ameliorate price,” says the SFC.

But inward the cases where orders had a worse toll when executed alongside an external liquidity provider, HK FXCM passed the losses straight to their clients:

“The Negative Slippage which is the divergence betwixt the worse toll as well as the master requested toll was bore past times the client.”

While the SFC acknowledged that HK FXCM co-operated alongside the investigation, the trouble solid likewise admitted that asymmetric slippage was taking house as well as agreed to reimburse all affected clients.

The SFC press unloose states that 3,739 accounts were affected as well as that victims volition endure receiving a credit inside thirty days.

This isn’t the commencement fourth dimension FXCM has been hitting alongside penalties relating to unfair lodge execution. In Feb of 2014, FXCM United Kingdom of Great Britain as well as Northern Ireland of Britain as well as Northern Republic of Ireland had to coughing upwards US$16.9 i chiliad one thousand - $6.9 i chiliad one thousand inward fines as well as $10 i chiliad one thousand inward restitution to clients - when it was fined past times the UK Financial Conduct Authority for the exact same asymmetric slippage practice.

And inward August of 2011, the National Futures Association inward the U.S. levied a $2 i chiliad one thousand penalty on FXCM for asymmetric slippage, amid other violations.

HK FXCM was sold to Rakuten Securities Inc., a Japanese fiscal services company, inward September of 2015 as well as HK FXCM was re-branded to Rakuten Securities Hong Kong Limited inward April, 2016.