Saxo Bank Wins Swiss Franc Case

This Thursday, the Danish Supreme Court said that the broker was not in the wrong for having executed trades below the stop-loss order. Until January of that year, the Swiss franc had been pegged to the Euro at a fixed exchange rate.

A brief overview of Swiss Franc Cap Removal Controversy

On 15 January 2015, the Swiss National Bank ended the franc’s race against the euro. However, this resulted in EUR/CHF going below the 1.20 level. Afterwards, Saxo Bank stated that it would try to change the filling price of the orders executed on CHF. In the end, this action resulted in losses for some clients.  On 23 January 2015, Saxo Bank reported that it might take a loss of about USD 107million.

On 29 January 2015, the Danish FSA was involved and asked Saxo Bank to report all the actions that were taken during and after the incident.

In February 2015, a group of over 20 Saxo Bank clients, asked Danish law firm Andersen Partners to look at whether they could launch a lawsuit.

In July 2015, the Danish FSA issued its review of Saxo Bank’s handling of the event. It blamed the bank is not immediately providing information to clients.

In March 2017, the UK Financial Ombudsman Service started a lawsuit with Saxo Bank. The reason was the dispute with the client more than 2 years after the SNB event, stating that the trader has to be compensated by Saxo Bank.

However, almost five years after the incident took place, Denmark’s supreme court has ruled in Saxo Bank’s favour. The court said that the company was not able to execute all of the client’s trades at their desired price, and the reason was an extraordinary market situation.

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