IG Group revises client agreements in Swiss Franc surge cases
Oct 7 (Reuters) - IG Group Holdings Plc has changed the terms of client accounts that were affected by a surge in the Swiss Franc earlier this year after intervention from the UK's Financial Ombudsman Service (FOS).
The FOS agreed that the online trading platform had acted in accordance with terms and conditions of a client agreement during the Swiss franc's surge on Jan. 15.
It, however, added that a contract that was beneficial to clients would have been more reflective of the underlying market liquidity during unprecedented market circumstances, IG Group said in a statement.
IG Group said it had accepted the FOS' determination and adjusted the client account in this particular case, and apply the same beneficial finding to all other affected client accounts.
The company's clients said earlier this year that it had breached British rules by trading in its own interest several minutes before acting on behalf of clients during the Swiss franc surge in January.
The additional financial impact would be about 1 million pounds ($1.5 million), IG Group said. ($1 = 0.6558 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Gopakumar Warrier)
