Problem Squared Financial Services Limited

[ABV]

if its true it's a disgrace
over 200 pips even at 5 digits is a very high on EURJPY as well

You can see it with your own eyes

in the attached file "file 1" you can see the live caught spread more than 80 pips
in the attached file "file 3" you can see ask=129.475, while bid=127.431, i.e. spread = 204.4 pips

 

[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.

I'm afraid to put you in an awkward position when will prove that you're lying.
Tell me, please, would you like to revise your statement?

 

[ABV]

To FPA: Is there any chance of taking this entire thread down once you have convinced yourselves of no wrongdoing on behalf of Squared Financial ? Moreover, might you consider creating a separate space dedicated to undesirable clients ? ... after all, "peace" implies two parties.

Tell me, please, did you receive my bank details?
Did you repatriate my funds?
You don't send emails to me, that's why I'm here.

 

[Pharaoh]

If you've sent your banking details, then check your account balance to see if the money has been withdrawn.

 

[Head of Legal&Compliance]

Eddiger,

It is true that the spread did widen. It is an anomaly that occurs from time to time in OTC markets. It doesn'y happen often, but regularly enough within many liquidity pools and it goes unnoticed by most as this phenomena generally lasts for a second or a few, and any trades resulting from such off market fills are generally cancelled (ie the client is reimbursed, and in many cases the client may not even know he had an off market trade which was then cancelled).

I am not speaking only speaking on the back of my experience at Squared Financial, but also at other FX dealer-Brokers including HSBC, Society General, some hedge funds, and Baxter Financial.

That wide spread event here lasted for a matter of seconds and all executions triggered as a result of that even were cancelled.

A "disgrace" may bit a bit harsh, it is not as if this happens every month on our platform. .. just as an exchange going down momentarily, a fat finger order over the telephone, or engine problems on a new car.... it happens some times, gets repaired, and preventive measures may be taken in some cases, and then you carry on with business.

Again, our client did not incur a loss as a result of this event. Any executions caused by this event were cancelled, but the client incurred other trading losses from his own initiative, and it seems he would like us to pay for those, under the pretext of this wide spread event.

 

[Head of Legal&Compliance]

If you've sent your banking details, then check your account balance to see if the money has been withdrawn.

Pharaoh,

I have ceased direct communication with our former client, as it has proven to be entirely unproductive and turned into a roaring circus.

If the client consents, I can evidence our attempts of communication. What had apparently happened, is that I was using an email address for him which was on file here, but I later learned he also had another email address. I suspect he simply did not look at the email account to which I had initially attempted to correspond. I also attempted to call him, to no avail.

There should be no problem with the repatriation of funds. I just checked with our back office and the value date for that is today.

 

[Master Yoda]

Head of Legal&Compliance,

1. You're saying that there is no connection between the spread widening and the loss of the clients?
2. regarding the termination letter was sent to the client- legally speaking, are you capable to do so without a notification?

 

[Head of Legal&Compliance]

Head of Legal&Compliance,

1. You're saying that there is no connection between the spread widening and the loss of the clients?
2. regarding the termination letter was sent to the client- legally speaking, are you capable to do so without a notification?

Eddiger,

We cancelled the trades executed on the client's account which were triggered as a result of the wide spread event, and reimbursed the client's account (obviously the client would have been subjected to a loss had we not cancelled the trade, but we did cancel the trade and reimburse the client).

The client also had losses on previously existing positions which had nothing to do with the spread widening event... and which it appears he is trying to make us pay for, though those losses are entirely his responsibility.

Legally speaking, yes, we can terminate a client's account without notice. This termination, which is obviously open to both the client and the firm, is in every standard account contract with financial institutions. Furthermore, as a matter of law, an indefinite contract (ie a contract with no specific term attached to it) can always be terminated at will (save as to any contrary contractual clauses) by either party. By the way, I did take care to ensure that the client had no open positions prior to cutting off his access and closing the account.

 

[Master Yoda]

Fair enough, in a case of loss that has nothing to do with spread widening I agree with you.
Another question please- how much was the time between the spread widening and the time you reimbursed the customer? if it took too long- what was his free margin during this period.
What I am trying to understand is if because this case the customer was unable to trade and for how long.

 

[Head of Legal&Compliance]

Fair enough, in a case of loss that has nothing to do with spread widening I agree with you.
Another question please- how much was the time between the spread widening and the time you reimbursed the customer? if it took too long- what was his free margin during this period.
What I am trying to understand is if because this case the customer was unable to trade and for how long.

The wide spread lasted a few seconds, and the client was reimbursed within about 2 days. I was in Paris at the time of the event, but jumped on the issue and the investigation immediately upon my return to Dublin and ordered to reimbursement of the client.

The client was able to trade at all times, without interruption.

Obviously, I cannot divulge information detailing aspects of the client's account.