A London court has dismissed a Bulgarian trader’s lawsuit against Forex Capital Markets Ltd (FXCM UK) alleging that the company improperly cancelled her foreign exchange transactions.
The plaintiff, Daniela Shurbanova, a retired schoolteacher from Bulgaria, alleges that the firm cancelled her trades on US dollar and gold which had netted her a $460.000 in profit following the release of a significant news event in 2013.
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The London High Court decision was based in part on an independent revision, which concluded that the claims had no sound legal basis. It added that her evidence at the trial in July was “inconsistent and implausible in a number of respects,” according to a recent Bloomberg report on the case.
The Bulgarian teacher earned this sizeable sum while she was trading on behalf of her husband, who had already been banned from trading by FXCM. She “plainly made false representations about her prior trading experience, and her personal financial position,” Judge David Waksman said in his ruling.
FXCM claimed that Shurbanova’s trades were executed in error based on off-market price.
According to the court papers, Shurbanova’s disputed trades were essentially based on a latency arbitrage strategy. Following the release of a key employment report from the US, she used “a very fast news feed to place trades and close them out at the height of any price discrepancy between FXCM’s slow retail price feeds and fast price feeds, which reflected the prevailing market,” the broker’s lawyers said at trial.