7th Oct 2015 09:30
LONDON (Alliance News) - Spread betting and contracts-for-difference company IG Group Holdings PLC on Wednesday said it has made a couple of changes after the UK Financial Ombudsman Service ruled on a client case related to the volatility which arose following the Swiss franc's jump in value earlier this year.
In January, the Swiss National Bank removed the Swiss franc's cap against the euro. The subsequent jump in the value of the franc ended up costing IG Group GBP27 million, the company said in its annual results in July.
IG said the Financial Ombudsman agreed that it acted in accordance with the terms and conditions of its client agreement and that it "complied with its duties of best execution and acted fairly in the way it processed client orders".
However, the regulator did find that a different contract fill level, in this specific case beneficial to the IG client who brought the case, would have been more reflective of the underlying market liquidity, in what were "unprecedented circumstances" for markets.
IG said it has accepted the determination and has adjusted the client account and will apply the same finding to other affected accounts.
It added that the additional financial impact it will face from this will be around GBP1.0 million.
IG shares were down 1.4% to 753.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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