Saxo Bank EUR/CHF lawsuit
Saxo Bank said it decided to continue allowing clients to trade EUR/CHF after the market froze on Jan 15 because it wanted to avoid lawsuits. The company made the comments in a letter to Danish regulators obtained by Bloomberg.
"Some customers could potentially have sought to make Saxo Bank liable for such a decision that, under the conditions, could have led to significant losses," Saxo said.
The company continued accepting and 'executing' trades during the EUR/CHF rout but it later changed the prices of those executions, to less-than-favourable levels.
A group of traders is threatening legal action unless Saxo reverses the decision to reprice and is fighting efforts to pay negative balances.
