Problem Squared Financial Services Limited

[ABV]

In sum, the client has confused "closed balance" and "net equity value".

Regards,
Head of Legal & Compliance

If you talking about me, I'm not confused.
I'd like to get my positions back, but you chose not to return them and make your own profit.

 

[ABV]

You are welcome to contact me when you please.

I sent one more mail almost 40 minutes ago. No responce.
Tell me, please, what else would I do to get your attention?

 

[ABV]

I sent one more mail almost 40 minutes ago. No responce.
Tell me, please, what else would I do to get your attention?

an hour has passed
my email which has been sent to Managing Director, Senior Sales and Trading and to the trading desk still has no answer

Tell me, please, dear Head of Legal&Compliance, do you have a trading desk?

Didn't you forget to remove my addresses from ban list?

 

[Head of Legal&Compliance]

I sincerely thought that my previous explanations were clear and sufficient. Unfortunately, you seem to be confusing so many things, that it seems you need more of an education in matters of market mechanics and accounting than merely an explanation.

I will attempt to address your points succinctly here:

1) The term “bid/ask spread” is sufficiently well defined in the industry, whether quotes are coming from one or several participants, and no further explanation is required.

2) You cannot possibly ascertain whether or not a liquidity provider widened its spread or not as you can not see every pool of liquidity in the world. If you were to have spent any time on an FX dealing desk, you would see for yourself that when a liquidity provider wants to stop quoting, they will either pull their quotes completely from the market, or widen their spread ridiculous wide (which is most often akin to pulling prices as they are no longer competitive). In your case, the liquidity provider with the huge spread was the only guy quoting for a few seconds over our platform. In regards to proof, our liquidity providers are under similar contractual terms as all other clients, and our obligation to secrecy applies … I do not have the right to publicly name our clients, just as I have no right to name you. You are proposing that I completely disregard my obligation of professional secrecy… it will not happen.

3) There were other brokers who were subjected to the same problem. Unless you verified all the time and quote records of every broker-dealer on the planet, it is impossible to affirm that “At th same time at USD-JPY, there was no such problems. No other pair, no other brokers, nothing.”

4) We add a fraction of a pip, to about a pip to prices for “all in prices”. I stated that “The one remaining liquidity provider widened its spread well over a big figure”, and I maintain that. Yes, the liquidity provider widened its spread by 2 big figures, which is, as I stated, “WELL OVER a big figure. No, we definitely did not add a figure to the spread.

5) I would be happy to discuss legal issues with someone who is either knowledgeable in law (ie another lawyer), or someone who can at least cite some legislation or regulations when affirming that something is, or is not, legal. Your comments pertaining to the legality of any of these events, without any reference to any legislation or any legal notion, consistently sound like an unfounded and uneducated opinion of a layman.

6) I did not get the memo pertaining to the monkeys in the zoo. Sorry, it must have fallen out of my dossier.

7) According to our accounts, we returned all of the money that was owed to you as a result of the cancelled trade. It can be further deducted that you are unaware of the difference between “closed balance” and “net liquidation value”, hence your confusion.

8) Regarding your question “where did I tell you that one of your staff didn't send me any letter?, my faint understanding of the English language leads me to believe that your affirmation "I sent three complaints by email, but received no response. No one response" would tend to possibly mean that you did not receive any letter… but maybe my imagination is just running wild with fanciful artistic interpretation here.

9) Regarding your comment “Tell me, please, where can I see the restored positions at the next morning? So you are not telling the truth”, I fail to see any indication of not telling the truth.

10) No, I did not sleep well on June 26th, but this seems to have little pertinence to the matter at hand.

11) All, and not half, of your money was returned to you because there was an off market execution (ie an execution at prices far off prevailing market) and it is common practice to cancel such trades. The legal term is “annul”, and the regime of annulations is that of retroactivity of rights. This is why we reimbursed your account.

12) “If you are cancelling my position, be kind, to restore balance of my account and reimburse lost of profits”. THIS is the very crux of the problem. It is mathematically correct, legal, just, fair and only common sense (for those who understand financial statements), that we would restore your “net liquidation value”, and NOT the “balance”. I appreciate that financial statements can be confusing, but these are crucial notions to understand when dealing in financial markets.

13) We have sent you emails to the address I have on record, and I see no “error” messages coming back to me. Try checking you spam box, or call me if you so desire. A public forum is not the appropriate venue for this discussion, but I am temporarily compelled to communicate with you here for transparency’s sake, following your confusion in public.

14) I am honestly having difficulty distinguishing your complaints from a frustration resulting from a poor understanding of market mechanisms… and the new information regarding laughing primates definitely detracted from the clarity of the issue.

15) “Which one please?” I believe that it is true that you are a client of Squared Financial Services. That is one example of what I believe to be true.


Regards,
Head of Legal & Compliance

 

[ABV]

I really glad to meet such an educated person.
Thank you for your attention.

1. The term “bid/ask spread” is sufficiently well defined in the industry and no further explanation is required - yes, you are right.

Tell me, please, dear Head of Legal & Compliance, spread more than 200+ pips (4 digit) is also well known in the industry?

2. You cann't name your provider liquiduty, of course. Otherwise, we can check your words.

3. I checked out a sufficient number of brokers to claim it.

4. You cann't name your provider liquiduty, of course. Otherwise, we can check your words. Do you want to be on the podium alone?

5. You should ask your arab friends about my occupaton. The extra knowledge will not hurt you.

6. Since you have not received any of my emails, a note about the zoo also has not reached you. I thought it would come.

7.

we returned all of the money that was owed to you as a result of the cancelled trade

Tell me, please, why did you cancel this trades if they were real, market and legal?

8. Please, change "where" to "when" and try again.

9. Did you want to restore my position in the morning?
- Yes, - you can see the letter of your staff.
- Did you do that?
- No. It was not profitable for you.

10. Did your other directors sleep well? I'm repeating the question.

11. See below.

12. See below.

13. You didn't send any letter earlier and you don't send any answer right now.

14. I'm understanding the market mechanisms, be sure, do not flatter yourself.

15. Thank you, you avoided me from the proof of that fact that I'm your client.



I'd like to receive an answers for the questions written above, before 11 and 12

 

[Marcus5799]

Thanks for the heads up I was just thinking of using them.

thanks for the heads up I was just thinking of using their services. Thats what makes this forum so great.

 

[Pharaoh]

Pharaoh,

As you certainly understand, we are bound by a professional secrecy obligation regarding our clients' information. I will depend upon information publicly disclosed by our client as a waiver of our secrecy obligation (hence my response yesterday), but as the client has not published his accounts, I can not go into any meaningful discussion about them without compromising my obligation to secrecy.

What I can say, however, in general terms, is that our CFO has identified the source of our client's confusion. In sum, the client has confused "closed balance" and "net equity value".

Regards,
Head of Legal & Compliance

ABV, could you please post here and also email SquaredFinancial your permission for a full explanation to be posted.

 

[Head of Legal&Compliance]

Update:

Trades executed on the client's account, as a result of momentarily wide bid ask spread (about 6 seconds), were cancelled last week and the client was refunded. last week, for all losses resulting from his stop orders being triggered.

The client failed to understand that his open existing positions, which were not affected by the bad quotes, contributed to a loss on his account.

If the client sincerely believes that that we should reimburse him the loss above and beyond the loss caused by the wide spread, he is not distinguishing, or fails to understand, two separate and independent causes for losses (bad quotes which were reimbursed, and his own trading loss which is entirely his own responsibility)

If the client does indeed distinguish and understand the aforementioned, then I can only reasonably deduct that he is acting in bad faith and attempting to have us reimburse his own legitimate trading losses, under the pretext that he had a bad fill and caused additional losses (again, these losses resulting from bad fills were cancelled and his account was reimbursed)

If the client is willing to post his accounts here, I will ask our CFO to comment and explain here in public.

For the record, I have been working in financial markets for over two decades (several years as a trader, and then over a decade as a lawyer specialised in financial markets) with top tier banks, hedge funds, brokerages, and portfolio management firms. I would not, and I could not jeopardise my career as a lawyer and as a registered compliance officer, for the sake of ripping off clients at a bucket shop. There have been times when my colleagues and myself have made errors, just as in every firm in the world, but this does clearly not appear to be the case in the mater at hand.

Moreover, My colleagues here at Squared Financial and myself showed concerned for the matter, inspected the cause, and attended to the best interests of the client in a timely manner, regardless of the fact that the client does not appear to appreciate the relative complexity behind the scenes and our sincere concern for upholding legitimate client interests.

 

[Head of Legal&Compliance]

Beyond the KYC procedures which regulated investment firms are subject to, does anybody know if there is a site or a good source for identifying unreasonable/underhanded/severely ignorant clients ?

This site seems to be a decent source for detecting bucket shops, boiler rooms and generally dishonest financial service providers, but some of us who are on the institutional side of the business would also really appreciate the ability to detect and avoid certain clients who are unreasonable, incapable of intelligent communication necessary for resolving problems, ... and yes, some clients (very few fortunately) are just as dishonest as some of the worst scam artists that Forex Peace Army has detected over the years.

 

[ABV]

Update:

Trades executed on the client's account, as a result of momentarily wide bid ask spread (about 6 seconds), were cancelled last week and the client was refunded. last week, for all losses resulting from his stop orders being triggered.

The client failed to understand that his open existing positions, which were not affected by the bad quotes, contributed to a loss on his account.

If the client sincerely believes that that we should reimburse him the loss above and beyond the loss caused by the wide spread, he is not distinguishing, or fails to understand, two separate and independent causes for losses (bad quotes which were reimbursed, and his own trading loss which is entirely his own responsibility)

If the client does indeed distinguish and understand the aforementioned, then I can only reasonably deduct that he is acting in bad faith and attempting to have us reimburse his own legitimate trading losses, under the pretext that he had a bad fill and caused additional losses (again, these losses resulting from bad fills were cancelled and his account was reimbursed)

If the client is willing to post his accounts here, I will ask our CFO to comment and explain here in public.

For the record, I have been working in financial markets for over two decades (several years as a trader, and then over a decade as a lawyer specialised in financial markets) with top tier banks, hedge funds, brokerages, and portfolio management firms. I would not, and I could not jeopardise my career as a lawyer and as a registered compliance officer, for the sake of ripping off clients at a bucket shop. There have been times when my colleagues and myself have made errors, just as in every firm in the world, but this does clearly not appear to be the case in the mater at hand.

Moreover, My colleagues here at Squared Financial and myself showed concerned for the matter, inspected the cause, and attended to the best interests of the client in a timely manner, regardless of the fact that the client does not appear to appreciate the relative complexity behind the scenes and our sincere concern for upholding legitimate client interests.

I'm crying and sobing while read the written above. What care about the interests of the client. What a indescribable selflessness.

Tell me, please, Your Highness, or, pardon me, your dear Legal&Complance Head of http://squaredfinancial.com/, why did you cancel disputable trades if they were market, legal and regular?

And one more, please.

How many times during 6 or 8 years of your existance you have had a spread more than 200 pips (4 digits)?

And we'll talk about everything else after that.

We'll talk about my ignorance and your professionalism, your unselfishness and about my loss, and much more.

But do not try to avoid answering.

I will not allow you, be sure.

P.S. Perhaps you also cried when you thought of how much money to give me back.
Only it was crocodile tears. Crocodile also cries when he eats his victim.