XTB appealed the decision in court but to no avail.
The Polish Supreme
Administrative Court (NSA) dismissed the cessation appeal filed by XTB (WSE:XTB)
concerning the Polish Financial Supervision Authority (KNF) decision to impose a financial penalty of PLN 9.9 million (over $2.2 million) on the brokerage in
2018.
Penalty Imposed on XTB Upheld
According
to the KNF's press release published on Wednesday, it was the second cessation
appeal by former X-Trade Brokers. The Polish regulator fined the broker in
September 2018, and the publicly-listed company appealed the decision. However,
the Voivodship Administrative Court in Warsaw rejected XTB's rationale and
upheld the verdict. Now, a similar conclusion has been made by the NSA.
The KNF
fined the company for violating the Polish Financial Instruments Trading Act concerning the provision of brokerage services without considering the
client's best interests. From 1 January 2014 to 31 May 2015, the company used
an asymmetrical setting of the deviation parameter in the execution of client
orders in the instant model.
XTB, as the
counterparty to the transaction, has enabled full transmission of execution
losses to clients through asymmetric price slippage. Conversely, the broker
reaped profits from advantageous price movements. This means that XTB executed
client orders when the slippage benefits them, while clients did not receive
any price enhancement if their orders were executed at a better price than
expected.
The
following is a translated excerpt from the KNF's statement: "In addition,
XTB applied the delay parameter to a selected group of clients, subject to
observation by the Trading Department, as a tool for additional verification of
the price in the placed orders, causing the suspension of execution of the
orders of such clients for the time specified by this parameter expressed in
milliseconds."
“In
connection with the judgment of the Supreme Administrative Court, which upheld
the verdict of the Warsaw Administrative Court dismissing our complaint against
the decision of the KNF, we declare that, even though we consider it to be
unfair, we recognize it and thus end our battle concerning the revocation of
the KNF’s decision,” XTB’s press office commented in a written statement sent
to Finance Magnates via e-mail
Interestingly,
in reaction to the Polish court's decision, XTB shares grew dynamically. In
just 15 minutes, they recorded a jump of almost 5%, once again approaching the
historical highs at PLN 35.30 reached on 21 February 2023.
XTB's shares went up after the KNF's statement. Source: Tradingview.com
XTB's CEO Omar Arnaout on
2022 Results
In its
preliminary quarterly financials published a month ago, the Polish FX/CFDs
broker listed on the Warsaw Stock Exchange has disclosed a substantial decline
in profits for the fourth quarter of 2022. While the company's revenue
increased yearly, it significantly decreased from the previous quarter.
Official
figures revealed that XTB's total operating income or revenue for October to
December came in at PLN 216.7 million (approximately $49 million), representing
a significant drop of nearly 45% from the PLN 391.3 million it generated in the preceding
quarter. This indicates that Q4 was the worst-performing quarter in 2022 for
XTB, which generated revenues of PLN 439.8 million and PLN 396.4 million in Q1
and Q2, respectively.
Finance
Magnates recently sat down with the CEO of XTB, Omar Arnaout, who has been
heading the broker since March 2017, to discuss the financial results of 2022, rising
client metrics, and other developments in the company.
"The
fourth quarter of 2022 was an excellent period for XTB from the operational
perspective. We managed the biggest marketing campaign in the history of the
company, onboarding over 50,000 new clients and generating the highest
quarterly volume in the history of XTB. On the other hand, market conditions
were not favorable for us, thus the lower net profit," Arnaout commented.
The entire
Finance Magnates interview with the XTB's CEO can be found here.
The Polish Supreme
Administrative Court (NSA) dismissed the cessation appeal filed by XTB (WSE:XTB)
concerning the Polish Financial Supervision Authority (KNF) decision to impose a financial penalty of PLN 9.9 million (over $2.2 million) on the brokerage in
2018.
Penalty Imposed on XTB Upheld
According
to the KNF's press release published on Wednesday, it was the second cessation
appeal by former X-Trade Brokers. The Polish regulator fined the broker in
September 2018, and the publicly-listed company appealed the decision. However,
the Voivodship Administrative Court in Warsaw rejected XTB's rationale and
upheld the verdict. Now, a similar conclusion has been made by the NSA.
The KNF
fined the company for violating the Polish Financial Instruments Trading Act concerning the provision of brokerage services without considering the
client's best interests. From 1 January 2014 to 31 May 2015, the company used
an asymmetrical setting of the deviation parameter in the execution of client
orders in the instant model.
XTB, as the
counterparty to the transaction, has enabled full transmission of execution
losses to clients through asymmetric price slippage. Conversely, the broker
reaped profits from advantageous price movements. This means that XTB executed
client orders when the slippage benefits them, while clients did not receive
any price enhancement if their orders were executed at a better price than
expected.
The
following is a translated excerpt from the KNF's statement: "In addition,
XTB applied the delay parameter to a selected group of clients, subject to
observation by the Trading Department, as a tool for additional verification of
the price in the placed orders, causing the suspension of execution of the
orders of such clients for the time specified by this parameter expressed in
milliseconds."
“In
connection with the judgment of the Supreme Administrative Court, which upheld
the verdict of the Warsaw Administrative Court dismissing our complaint against
the decision of the KNF, we declare that, even though we consider it to be
unfair, we recognize it and thus end our battle concerning the revocation of
the KNF’s decision,” XTB’s press office commented in a written statement sent
to Finance Magnates via e-mail
Interestingly,
in reaction to the Polish court's decision, XTB shares grew dynamically. In
just 15 minutes, they recorded a jump of almost 5%, once again approaching the
historical highs at PLN 35.30 reached on 21 February 2023.
XTB's shares went up after the KNF's statement. Source: Tradingview.com
XTB's CEO Omar Arnaout on
2022 Results
In its
preliminary quarterly financials published a month ago, the Polish FX/CFDs
broker listed on the Warsaw Stock Exchange has disclosed a substantial decline
in profits for the fourth quarter of 2022. While the company's revenue
increased yearly, it significantly decreased from the previous quarter.
Official
figures revealed that XTB's total operating income or revenue for October to
December came in at PLN 216.7 million (approximately $49 million), representing
a significant drop of nearly 45% from the PLN 391.3 million it generated in the preceding
quarter. This indicates that Q4 was the worst-performing quarter in 2022 for
XTB, which generated revenues of PLN 439.8 million and PLN 396.4 million in Q1
and Q2, respectively.
Finance
Magnates recently sat down with the CEO of XTB, Omar Arnaout, who has been
heading the broker since March 2017, to discuss the financial results of 2022, rising
client metrics, and other developments in the company.
"The
fourth quarter of 2022 was an excellent period for XTB from the operational
perspective. We managed the biggest marketing campaign in the history of the
company, onboarding over 50,000 new clients and generating the highest
quarterly volume in the history of XTB. On the other hand, market conditions
were not favorable for us, thus the lower net profit," Arnaout commented.
The entire
Finance Magnates interview with the XTB's CEO can be found here.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
iFOREX Adds Saudi and South Korean Equity CFDs as IPO Is Delayed
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
