Saxo Bank is cheating customers after SNB removed EUR/CHF floor

V

V for Vendetta

Saxo Bank is cheating customers after SNB removed EUR/CHF floor. Saxo Bank initially closed the EUR/CHF positions with market price, and after 12 hours they re-quoted the price and put with negative balance most of the customer’s accounts. This is not legal and we should act against Saxo Bank and defend the users.

Please if you are a victim of Saxo Bank with the same problem join our group to do a trial together in Denmark. Send e-mail to: saxobankcheatedusersgroup@gmail.com

BR - V for Vendetta
 
Saxo bank:“Due to today’s exceptional market movement in CHF crosses, we have been filling client orders and positions in an extremely illiquid market. Once we are better able to establish true market liquidity, all executed fills will be revisited, and will be revised and amended to more accurate levels. This may result in a worse execution rate than the originally filled level.”

This is how it worked where I traded Forex: every order that was executed was time stamped and had the account number for which this execution was done. Orders were filled or not filled. Confirmation ticket was available within 2-3 minutes after fill.

They cannot be filled and then later be filled again at another price.
Forex always was and still is a criminal business.
Saxo is executing clients, not orders.
It is also strange that they say: This may result in a worse execution rate than the originally filled level. Because theoretically price can be better or worse. Why only worse? Because they already knew what they were going to do?
 
Yes, unfortunately for us (the cheated users). Saxo Bank that day was doing his ''job'' as a market maker. They saw that they had a lot of customers with long positions in EUR/CHF, and they had nobody short. Nobody expected the SNB will remove the floor. Then what happened? Saxo Bank bought in the real market long positions, because they were thinking, when the EUR/CHF go up we have to pay to our customers. Then they bough more than the customers positions. And after the EUR/CHF fall they could not cover the long position with only the money that the customers loss, because they loss more money, much more... then now they are trying to collect the money from the customers to finance their self....this is pathetic...

All the World must know it. Saxo Bank is in a very difficult financial situation. Around 30% of their customers were long in Eur/Chf, and now they will loss their customers but they prefer it and they want to take money from them. They re-quoted the EURCHF and they put most of the accounts in negative with very big losses... and they are calling each customer to collect that money very fast. It is very suspicious.

If Saxo Bank is market maker, why they say that the market did not have liquidity? if the market did not have liquidity why they gave to the customers the option to trade with Eur-Chf? if they did not opened that positions one by one in the real market, how they can say that the market did not have liquidity? they can not proof in front of the judge that they opened all the positions in the real market. Then they can not win the case, because they were market makers and they made a big mistake buying too much EUR/CHF. It is not customer's problem.

BR - V for Vendetta
 
http://brontecapital.blogspot.co.uk/2015/01/it-is-time-to-close-saxo-bank-down.html



BTW, they are reporting a "maximum loss" i.e. customer debits that they might not recover, of USD 107m, compared to their 430m equity before the event. Their capital cushion above requirements now down to usd 66m, if I calculate correctly. IMO Unlikely that they did this "repricing" (with which they likely recovered from solvent accounts some of what they lost on others) in a desperate attempt to avoid failing the capital requirements, but you never know.

I definitely agree with Hempton that the regulator should look into this. If the OP is affected, please contact the Danish capital market regulator.


http://www.ise.ie/app/announcementDetails.aspx?ID=12225941
 
"The bank filled what it described as an “abnormal” volume of about 818 million francs ($910 million) in just 30 minutes"

http://www.bloomberg.com/news/artic...nd-franc-trade-details-to-fsa-amid-complaints

It looks more and more to me that they are trying to do a Corzine here - dip into customer assets if you need it.

Their systems were probably programmed to just fill customer orders by themselves. Thats why they quickly sent out transaction reports at 1.18 CHF to 1 EUR. In normal times, thats a much cheaper way to operate, instead of having a direct access system hooked up to external liquidity providers. Also, they get the benefit of being able to net out opposing customer trades before they hit a exchange or they need to hedge. But, in times of crisis, this forces them to either eat the difference/ take the loss themselves or stick it to clients by "repricing" later.

Assuming the $900m volume talked about above was all on the same side, and they sent execution reports to all clients around 1.18 initially, and repricing to 0.96 later, thats roughly a 180m impact. Since they talk only about a 107m "max loss" to themselves, is the remainder the amount that they effectively grabbed from still solvent accounts through the repricing?

With a 180m loss, they would fail capital requirements, while with a 107m loss, they still have a 60m buffer.

That would explain why they even attempt such a move - deservedly attracting such bad publicity.
 
the following is a google translated article of danish business.dk. they are following the saxo issue closely with several articles.

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Both from Germany, Austria and the Czech Republic are angry customers in fights with Saxo Bank. The Danish Financial Supervisory now demanding an explanation after 10 customers have complained about the bank's behavior.
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SEE ALSO
FSA demands explanation from Saxo Bank
Here is the man Saxo Bank in the firing line
Therefore, Saxo Bank is asking for trouble
Can Saxo Bank reinvent itself?
Swiss monetary shocks can cost Saxo Bank 700 million kroner
Saxo Bank: "We have done what we could to be responsible '
Saxo Bank fear a loss of 700 million. kr in Swiss francs
"My Saxo account shows a six-digit deficit. What should I do? "
Saxo-boss wants action on currency speculation
Millions of euros are lost to Saxo Bank clients around the world. Now, more ready for a frontal legal attack on the Danish speculator bank specializing in letting customers trade Forex.
On January 15, hit the perfect storm the bank, since Swiss franc suddenly increased by 34 per cent. And it triggered Saxo Bank's stop-loss functions when the bank closes customers down to secure themselves and customers against the gigantic. But many customers have since been met with huge bills from Saxo Bank, and sow now doubt whether the bank has handled the trades properly and given the right courses at the critical day.
Read also: Swiss currency shock could cost Saxo Bank 700 million kroner
One of those who collect angry German customers, attorney Peter Gundermann from Cust in the southern German city Kirchentellinsfurt. Here it is necessary at least 10 dissatisfied customers before you can make an appeal from the German law on mass action, but there are already more than 10 who have volunteered.
What happened to German customers in Saxo Bank?
"After the Swiss National Bank decision on January 15 will Saxo Bank customers now faced margin calls (stop-loss sales courses, ed.) And economic demands that threaten their existence," explains Peter Gundermann.
What mistakes have Saxo Bank committed after your assessment?
"We are now looking at their failures and breaches of duty right now. We do not yet have a final picture of all the mistakes they have committed yet, "says Gundermann, who stated that they have not yet formally sued Saxo Bank.
Also read: FSA demands explanation from Saxo Bank
Also in Austria raises anger against the Danish bank. This time it's trustee censeo from Vienna who is dissatisfied with the bank's behavior. It is particularly interesting because censeo is one of Saxo Bank's partner banks ie using Saxo Bank's trading platform.
Also here is the problem according to the østrigste media Forma.at that Saxo Bank subsequently changed the rates that customers were promised in connection with its stop-loss orders to the detriment of Censeos customers. This is probably due to the critical day was the opportunity to sell the currency in regular trade, because the courses due. Panic rose so quickly. The Austrians now accusing Saxo Bank for having broken the law by subsequently charge bills contrary to the stated price - and you will now go through the legal process in the case. Censeo has 140 foreign customers, has a total of 30 million. euro in currency transactions.
Also according to a reputable Czech business daily Hospodářské Noviny Saxo Bank customers in turmoil after receiving huge bills from the Danish bank with headquarters in Tuborg Harbour. Saxo Bank thus requires millions in compensation from hundreds of Czech customers. The essence is that the rapid increase in franc exchange rate was Saxo Bank to change its courses with a requirement that customers pay the difference. For investors who have invested only a few hundred thousand korun now being charged up to a million korun, it is very difficult to defend themselves in court. Investors are therefore considering a joint action and have turned to zaloby.cz, an Internet portal for mass claims.
Also read: Saxo Bank: "We have done what we could to be responsible '
"Saxo Bank got its customers to place orders and told them that their orders were carried out at the exchange rate XY. Then it turns out that it was not possible to buy at this price in the currency market, but only to a less favorable exchange rate. So it did. The bank created then an average price and said the day after to customers that their orders were carried out in a period of very strong rise in the franc would be recalculated with the new average, which, however, was disadvantageous to customers, "explains Internet portal.
Opposite the angry checking the bank's financial director, Steen Blaafalk stated that the jump in the exchange rate was quite extraordinary. Therefore it went so wrong:
"After the Swiss central bank's announcement it lasted about 30 minutes before the liquidity returned to the market, and all orders could be traded. This is the first time in 30 years that I have experienced such a jump in one of the major currencies. Saxo Bank is subject to European regulation, and its activities follow the Bank's business conditions, the validity of all customers have accepted. This also applies to events surrounding the Swiss franc. "
Also read: "My Saxo account shows a six-digit deficit. What should I do? "
But this interpretation is Daid Fyrbach lawyer from the law firm Feichtiger, Zídek & Fyrbach which already represents some of the clients who suffered losses in the Czech Republic, critical. He stresses that many of Saxo Bank Czech customers have not had a contract for an investment service nor received adequate information about the risks of the products they offer to customers. Now they refuse to provide any information or documentation requirements, and pushes them to reach a settlement under threat of lawsuit by Danish courts.
The situation is tapered so that the FSA now quite extraordinary informs that require a statement from Saxo Bank in the case, after a number of foreign players have complained about Saxo Bank's behavior and fixings.
The FSA confirms Communications Søren Møller Christensen that one is in dialogue with Saxo Bank about the event on January 15:
"We have been approached by about 10 Saxo Bank customers, to varying degrees are not happy with what is going on. "
Also read: Saxo-boss wants action on currency speculation
FSA stated that they will require a detailed report from Saxo Bank about their actions during and after the events. Not disclosed a timeframe of when the statement must be submitted.
Saxo Bank wrote in an email that is in dialogue with the FSA. The bank also expect a critical dialogue with angry customers who feel mistreated and are considering legal action against the bank:
"We have dialogue directly with customers, and if customers want to use a different procedure to conclude the chapter, so they really have the degree of freedom, and then we take it that way. Overall, we have a legal good cause, and so we will maintain either to customers or to the lawyer, if customers choose to use such a, "explains Saxo Bank's CFO Steen Blaafalk that invites customers to try to find arrangements with the bank instead of going to court:
"It will require the use of a lot of resources and time if you do it that way, so I think it will be most obvious that we find a system together. We are aware that some customers are in a very difficult situation, and we would also like to discuss with them and I also think that we can find a solution with customers. "
Late Friday afternoon sent Saxo Bank a press release which stated that the bank still meets its capital needs, but that the bank anticipates writedowns of 700 million. kr., as a result of currency fluctuations tempest on 15 January.
Berlingske Business would like to hear more from Saxo Bank customers who have experienced the events of Saxo Bank. Write to petj@berlingske.dk or call the financial editor Peter Nyholm on 41,726,404th
 
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