Problem Squared Financial Services Limited

[Head of Legal&Compliance]

You are mistaken again.
Frequently Asked Questions

Dear Sir,

For further discussions, please speak to your lawyer, the police, the regulator, or whoever you please. My efforts with you have been in vain.

 

[ABV]

Dear Sir,

For further discussions, please speak to your lawyer, the police, the regulator, or whoever you please. My efforts with you have been in vain.

No more your answers mean no more your lie.
Thank you.

 

[ABV]

As for losses.

Let's talk about it. Our Hear of Legal... had asked this thing a long time.
Let's recall (for the beginning) where my stop-orders and market price were at the time of spread widening.

Market price EURJPY was at 128.200 +/-. Everyone can verify this, see the attached file named “file_3”.
Making my strategy which was broken by Squared Financial Provide Next Generation Trading Software I saw and expected that the nearest pivot point zones (PPZ) were at 130.300 +/- (up-zone) and 126.800 +/- (down zone).

And I expected that the market price will unfold in one of these zones and will go to another zone. Moreover, the probability that the market price will go down was higher than the probability that market price will go up.

This is confirmed by the fact that my sell-stop-orders were closest to the market price than my buy-stop- orders (40 pips from market price to nearest sell-stop-order VS 60 pips from market-price to nearest buy-stop-orders). There was a possibility of breaking through of these zones, but not very large.

And I put stop-orders with the appropriate take-profits directly in this scenario. Targets of some orders were a little further than these zones. It is usually used with a trailing-stops which starting at PPZ.

Look at the file named “PPZ”. The price reached the bottom – 126.571 – June 25 (slightly lower than 126.800 – about 23 pips lower - it's important), turned and walked up to the level 130.637 (slightly higher than 130.300 – about 33 pips - it's important) – July 2.

Now let's look at what I was deprived of the actions and/or omissions of Squared Financial Provide Next Generation Trading Software.

Look at the file named “direct losses”.
In the red rectangles you can see 5 deleted buy-stop-orders with the target at 130.300 or slightly low, 1 buy-order #916 which was closed by stop-out and 2 buy-orders in red oval (1 market stop-outed #992 and 1 deleted #583).
In the right column everyone can see the sum of direct losses on each buy-order (without spread and commission of course). The losses are written in red digits.

In the blue rectangles you can see 2 stop-outed sell orders with the target at 126.800 and in the the blue oval you can see 2 stop-outed and 1 deleted sell orders.
In the right column everyone can see the sum of direct losses on each sell-order (without spread and commission of course). The losses are written in blue digits.

All calculations are made only to the level of PPZ, - 130.300 and 126.800. Not more, to avoid accusations of self-interest and without the influence of the trailing stop.

It's more than 15,000 EUR.
It's only the direct losses from previously established orders, excluding gains when market price moved from the bottom up.

It was a very delicate and accurate adjustment of volumes and positions of orders and it was broken.
Who is responsible for that?

Look at the file “transactions 3 sell-stop”. Do you see at the top of the file the date and time: 25.06.2013 6:42. I can guess it's the date and time of no return of my positions while they are returned of their own positions if they do not lie in that.

Ask yourself the simple question: why they did not return my positions back?

Maybe they were too lazy?
Or they liked my positions?

 

[ABV]

I've got an answer form Regulator.

It is clear from the documents submitted in this matter that there is an allegation of fraudulent behaviour involved in this case. “I think these actions of Squared Financial Services Limited is unlawful and unreasonable, aimed at misappropriation of funds of its customers by artificially manipulating quotes”. Fraud is a criminal offence and this office is not in a position to investigate or to give the appropriate sanctions in relation to such cases.
Because the Bureau is neither established nor equipped to deal with cases involving fraudulent behaviour, and because a Complainant has available to him an alternative means of redress, the Ombudsman does not as a matter of practice investigate such complaints.
I should point out that under the applicable legislation, the Ombudsman has a wide discretion to determine the basis on which to refuse to, or discontinue to investigate a complaint and may exercise this discretion at any time. Even if there is only a reasonable indication that fraud may be involved, without any specific references or allegations made, the Ombudsman may, within that discretion, refuse to investigate.
I appreciate that this decision may be disappointing to you but the decision was arrived at following a full and thorough review of your case. Regrettably, the Financial Services Ombudsman is not in a position to assist you any further in the matter.
While I cannot address your complaint, I would suggest that you contact the Gardai, who may be of some assistance. You could also contact the Irish Stock Exchange and I enclose herewith printout from the Irish Stock Exchange in relation to their Regulation.
Yours sincerely,

I think, Regulator says to me: "You should call to police".

 

[Master Yoda]

that actually interesting, the regulator here is telling you there is a suspicious activity but did he say he's going to take any actions or investigation against them?

 

[ABV]

that actually interesting, the regulator here is telling you there is a suspicious activity but did he say he's going to take any actions or investigation against them?

No, regulator was advised to contact to the police

 

[Pharaoh]

The police and the Irish Stock Exchange.

 

[ABV]

I have a very simple question for either ABV and/or Squared Financial:

Did the lack of availability of funds from the trades that were spiked out by that pricing issue have anything at all to do with the other losses? I.E. Was the lack of funds somehow responsible for a margin call or for the client closing to avoid a potential margin call?

I'll try to explain my direct losses between widening of spread and partial returning time.

As you can see in the file named “sells” I had 2 sell-orders #921 0.9 lots and #663 0.9 lots with the aim 126.800, 2 sell-orders #941 1.5 lots and #083 2.1 lots with the aim a little bit lower – 126.300.
I had 3 sell-stop-orders as you can see in the file named “file_2” #530, #324, #587 each equals 0.72 lots with the aim 126.300.
And as you can see in the file named “sells” I had one more sell-stop-order #622 0.72 lots with the aim 126.300.
As I described earlier they are usually used with a trailing-stops which starting at PPZ. As I wrote earlier, PPZ was established (in my opinion) at the level 126.800.

Totally, at the moment of spread widening I had 2*0.9+1.5+2.1+4*0.72 = 8.28 lots with the aim 126.800 or little bit lower 126.300 which had to be used with trailing-stop after level 126.800.
Total losses from down-trend between widening of spread and partial returning time is equal 8490 EUR (without spread and commission, of course).

As you can see in the file named “PPZ”, the price reached the bottom – 126.571 – June 26 (slightly lower than 126.800 – about 23 pips lower - it's important). Everyone can check that this level was achieved at 15:05 GMT.

It might guess that the partial returning of funds was occurred at 15:10 GMT June 26 (i.e 5 minutes later) as you can check in the file named “file 2606 refund”.

Look at the file “transactions 3 sell-stop”. Do you see at the top of the file the date and time: 25.06.2013 6:42? I think it's Dublin time and it means GMT+1. i.e. it's equal 07:42 GMT. I can guess it's the date and time of no return of my positions while they are returned of their own positions if they do not lie in that.

See the next post...

 

[ABV]

Continuation of previous post

Approximately the same time, I asked them about what they are going to do: as you can see in the file named “2506 11=33 out”. 11:33 Moscow time means 07:33 GMT. It means 07:42-07:33 = 9 minutes before I asked them what they are going to do. After 9 minutes, they decided to return all positions, as they promised last night, as you can see in the file named “2506 3=22 in”, but did not fulfill it, and wait until the first profitable trades will be closed at 15:05 .

And after that, 5 minutes later at 15:10 they shared with me part of my money.

Good guys and big deal, how do you think?

 

[Pharaoh]

I'm still not sure I get this. They waited to restore losses caused by an incorrect price spike until after you closed a profitable trade at 15:05? Why would you need to close a profitable trade?