LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Warsaw based X Trade Brokers Dom Maklerski SA (WSE:XTB), which operates Retail Forex broker XTB.com as well as the X Open Hub trading platform, issued today a response to reports that Poland’s Financial Supervision Authority (Komisja Nadzoru Finansowego, or KNF) was going to initiate proceedings against the company for perpetrating Forex Fraud.
As we reported earlier this week, shares of XTB tumbled by about 40% after word broke in the Polish press that the authorities, following a lengthy investigation, had determined that XTB engaged in a practice called asymmetric slippage in executing orders for clients, costing XTB clients millions of dollars.
Asymmetric slippage is the practice of treating market movements after orders are placed, but before they are executed, differently. What XTB is suspected of is executing client orders when the slippage was in its own favor, but cancelling (or repricing) client orders when the slippage was in the client’s favor.
XTB responded by stating that it indeed received a decision dated November 14, 2017 from the KNF’s Commission of Supervision
on the initiation of an administrative hearing against the company.
However XTB said that in its opinion, the infringements identified by the Commission are “unfounded”. The company said that its intention is to provide the Commission with substantive explanations indicating the inadmissibility of the infringements identified by the Commission.
The XTB response to the KNF can be seen here (in Polish).
We will continue to follow this story as it develops.