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Screenshot of a breaking news alert e-mail from Q2 2017
FFAJ, the Japanese regulator which oversees the futures and electronic trading industry, has issued Alpari’s Japanese operations with a 1 million yen (approximately $8,500) fiscal penalty for asymmetric slippage.
The administrative penalty has come about as a result of slippage on certain MetaTrader 4 client accounts which took place on December 1, 2013, drawing the attention of the regulator.
The firm was ordered to take remedial action and demonstrate that it had systems in place to ensure that such slippage did not occur, by April 6, 2014.
Subsequently, the FFAJ ruled that a fiscal penalty should be payable, and the amount by which the customer concerned had been affected to be refunded by November 26, 2014.
Despite this being a very small fiscal penalty, it comes at a time when the Alpari Japan is in administration, as it is a subsidiary of Alpari UK which became insolvent following the market volatility created by the sharp appreciation of the Swiss Franc on January 15.
This came about as a result of the Japanese Financial Services Agency (FSA) having stepped in to ensure safeguarding of client assets in the otherwise very liquid Alpari Japan, in order to prevent any possibility of Alpari’s UK division transferring assets out of the Japanese division.