The Financial Commission (FinaCom PLC) on Tuesday announced it issued an execution certification for Garnet Trade as the industry-specific association attempts to reduce the number of execution-related disputes that occur before they progress into formal complaints.
According to its website, Garnet Trade is the trading name of Garnet Limited, which is headquartered in Sydney, Australia, and has offices in Australia, the UK, and Canada. Garnet Ltd holds a license from the financial services authority of Saint Vincent and the Grenadines.
The FinaCom’s assessments depend on VerifyMyTrade, a post-trade solution that has developed capabilities to accurately measure the execution quality of positions across the retail FX market.
The service was introduced in 2018 and allows clients of the commission’s brokerage members to use its analysis tool to check whether their trades were fairly priced or not.
Verify My Trade consolidates price feeds from dozens of retail forex brokers to produce statistical box plots, which are a representation of the minimum, maximum, and percentiles of the ticks received for every second of the day.
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Helping settle price disputes internally
The Financial Commission said it has already audited and issued execution quality certifications to several retail brokers, including Alpari, Forex Club, and AMarkets.
To maintain their certified status, these brands are required to continuously submit their order execution data to the VMT analysis tool, which maps the execution price to the boxplot for that time of day to assess the effectiveness and quality of the broker’s execution.
Due to the price verification capabilities, brokers who implement the service would be able to settle price disputes internally, by inducing evidence on asset prices at any given time, from an impartial party.
And in case the client claims that he is consistently getting poor execution, the analysis results will facilitate handling execution-related trade disputes.
According to its latest annual report, the Financial Commission received a record of 1,012 complaints in fiscal 2019. Specifically, the number of new complaints rose seven percent year-over-year as a record $7.4 million sought by traders in 2019, up from $3,184,932 in 2018.