taking a cfd broker to court for Asymmetric slippage

[gi trader]

would anyone have any advice about taking a broker to court regarding Asymmetric slippage. my trade limit order was executed at 11.01.30 but at the rate of the market at 11.00. this has caused a loss of profits of around 30k
amongst other smaller issues relating to Asymmetric slippage

 

[Trader333]

Was this with a Spreadbetting company and if so which one ?

 

[gi trader]

Was this with a Spreadbetting company and if so which one ?

hi yes it was a spreadbetting company. i don't want to publicy yet which one.

 

[gi trader]

also have been to the ombudsman already and they alwyays base around fairness so sided with broker. that it was fair for them to give me price of underlying open. so looking towards court action. but looking for ideas and people with experience in this.

 

[Trader333]

Unfortunately, because you used a SB company they can quote whatever price they want for any market and have no obligation to quote a price that is close to the actual market. This whole issue comes up again and again that SB companies deliberately quote a price to make their clients lose money when they are in a trade. I doubt you will have any success in taking them to court for the above reasons.

 

[trilobite]

Unfortunately, because you used a SB company they can quote whatever price they want for any market and have no obligation to quote a price that is close to the actual market. This whole issue comes up again and again that SB companies deliberately quote a price to make their clients lose money when they are in a trade. I doubt you will have any success in taking them to court for the above reasons.

Clue is in the name Spread BET, they are just bookies really. Price may be derived from market price, but does not have to match it.

 

[gi trader]

thank you for your replies.
the view that i wish to take them to court with is two fold.
firstly. even though they are spread bet their price has to come from somewhere and since they are a regulated firm they have to comply with
a general duty imposed by COBS 2.1.1R:
"2.1.1R The client's best interests rule
(1) A firm must act honestly, fairly and professionally in accordance with the best interests of its client (the client's best interests rule).

secondly. there is a contract between myself and the sb company that they have to follow their terms and conditions which state their prices follow the underlying prices but they wrap a spread around. so they cannot simply make up their prices. if their price besides the spread differs in any way to the underlying they will have to explain why that is as otherwise they could simply make up any price they wished and surely they could not be a regulated company doing so

 

[Trader333]

Have you got time stamped proof of how far away the price was from the underlying market and the time at which your trades were closed ? They may also try using a "volatility" argument for supposedly widening the spread to a much higher level than normal. It is worth checking the T&C for that particular case and what it states concerning market volatility as that is where many previous people have had trades closed at high losses. You may also need to provide Bid / Offer prices for the underlying market at the time as well because if there was a large difference between the two then that will be a defence as to why the SB company did the same. Can you say what the market was and the date/time of the trade ?

 

[gi trader]

hi yes i do have a lot of proofs. i was technically worried about them "making up" very wide spreads. but they actually submitted to the ombudsmen their first prints of their buy sell prices from 11.01.13 with a 5 point continuous spread which is inline with their normal spread.
because it was the first sunday after russia invasion the market had moved aroun 4-5% in that minute

 

[gi trader]

another point is that a whole minute after the market opened is too far for them to make up that they had a super wide spread

 

[gi trader]

it is seriously incredible how they have just made up their prices which doesn't reflect the underlying at all. i don't understand what they are thinking. but they are just adament that the customer is trading their prices and not anything else and what they are quoting are their prices

 

[gi trader]

i have been looking online at solicitors. i came across a few some who never bothered replying, some who said they were too busy, and one that did reply to me Giambrone. but they want silly money like £3k for looking over it and sending a letter of claim which from my part the broker will just ignore. they also said going to court would probably be too expensive. i think that Giambrone prefers to deal with higher value claims

i have tried to remove the conflict of interest by saying hey lets do a no win no fee, if you seriously think there is a high chance of winning then charge a higher amount like double but nwnf but they declined.

if it would be under 10k claim i would just do it myself, but since it is over probably needs barrister ( i think can avoid solicitor) so just wandering if anyone here knows a competent barrister (who doesn't charge the world) and preferably in manchester. the case itself is pretty simple. what i basically need is someone to bring the legal arguments and structure it correctly

 

[Rufus_Leakey]

would anyone have any advice about taking a broker to court regarding Asymmetric slippage. my trade limit order was executed at 11.01.30 but at the rate of the market at 11.00. this has caused a loss of profits of around 30k
amongst other smaller issues relating to Asymmetric slippage

hi yes i do have a lot of proofs. i was technically worried about them "making up" very wide spreads. but they actually submitted to the ombudsmen their first prints of their buy sell prices from 11.01.13 with a 5 point continuous spread which is inline with their normal spread.
because it was the first sunday after russia invasion the market had moved aroun 4-5% in that minute

It sounds like you are saying you had a limit order but the broker filled it at a value worse than the limit value. If so, you probably have a good chance of getting the problem fixed.

If your order was a market order and you think the price quoted was incorrect, it will be a lot harder to win your case.

Posting more details about the order and the trade (e.g., the exact order including the order type instrument, number of shares, etc,, when the order was entered, when the order was filled, fill price (I'm not sure what "11.01.30" means) would be helpful to determine if it's worthwhile to pursue your case.

 

[gi trader]

It sounds like you are saying you had a limit order but the broker filled it at a value worse than the limit value. If so, you probably have a good chance of getting the problem fixed.

If your order was a market order and you think the price quoted was incorrect, it will be a lot harder to win your case.

Posting more details about the order and the trade (e.g., the exact order including the order type instrument, number of shares, etc,, when the order was entered, when the order was filled, fill price (I'm not sure what "11.01.30" means) would be helpful to determine if it's worthwhile to pursue your case.

thanks, so you get the picture order for limit cant remember exactly but lets say around rough prices of 120. underlying opened at 11.00 @121 underlying price at 11.01 @ 125 underlying at 11.01.20 @ 126

trades should get executed at the price of the exact time the trades get executed at. the price should be the underlying +/- the spread. if broker wishes to perhaps lie and claim there was not enough liquidity in the underlying. they would have to proove from bloomberg how many lots were available in the order book.
by default a cfd or sb has no liquidity as it a bet against the broker. but the broker might claim they hedge it. well if they do then they will have to show their liquidity provider placing the trade into the underlying or the whole chain until the underlying otherwise someone is just up a price off the top of their head.

similar the case of ig spread bets when the swiss chf depegged. ig claimed not enough liquidity in underlying. ig had to prove their orders with the underlying banks see previous ombudsman cases

 

[CFD Bluff]

would anyone have any advice about taking a broker to court regarding Asymmetric slippage. my trade limit order was executed at 11.01.30 but at the rate of the market at 11.00. this has caused a loss of profits of around 30k
amongst other smaller issues relating to Asymmetric slippag

would anyone have any advice about taking a broker to court regarding Asymmetric slippage. my trade limit order was executed at 11.01.30 but at the rate of the market at 11.00. this has caused a loss of profits of around 30k
amongst other smaller issues relating to Asymmetric slippage

Complain to the provider. Threaten to complain to the supervisory authority. Prove the price discrepancy. To do this, order price data from the stock exchange and prove how much you were disadvantaged. Complain to the financial supervisory authority. Probably none of this will help. Look for when the statute of limitations expires when you file a lawsuit. Find a lawyer and prepare a lawsuit. I have been suing in Germany for 10 years because of this. Just don't give up. Best Regards

 

[CFD Bluff]

would anyone have any advice about taking a broker to court regarding Asymmetric slippage. my trade limit order was executed at 11.01.30 but at the rate of the market at 11.00. this has caused a loss of profits of around 30k
amongst other smaller issues relating to Asymmetric slippage

You don't need bid / ask quotes From stockexchange. What you need are the intraday Times & Sales prices. Then you Take your trade execution time with the execution price From the fraud trade. Then compare and calculate the difference. You have do that for the opening and the closing trade. Finally you get the difference, the sum what was your disadvantage amount..

 

[gi trader]

thank you.for your replies. yes basically i need to gather evidence which i am sure i can. the issue is the broker says they post their prices. not anyone elses prices and the ombudsman seems to go with them. obviously it is more inntricate. the thing about lawyers is that they charge a fortune and sometimes it doesn't add up for the risks

 

[CFD Bluff]

OK, prices move in a matter of seconds, usually. Even the British regulator confirmed this in a study from July 2014. See attachment. What does it say in your terms and conditions? Send them to me. Of course, it's a matter of weighing things up.Please find the FCA confirm tobbest execution CFD Providers at Page 18..