Liquid Markets’ administrators agree 546 clients’ claims, worth $4.34 million

The administrators of LQD Markets UK (Liquid Markets), which stopped operations following the January 15, 2015 events, today published a report regarding the recent progress of their work.

RSM Restructuring Advisory, previously known as Baker Tilly, say that they have agreed compensation claims with 546 former clients of the broker. The claims are worth a total of $4.34 million.

All of these claims are referred to the Financial Services Compensation Scheme (FSCS), which in August last year confirmed that clients of LQD Markets are entitled to compensation under the scheme. Once the FSCS receives the data from the administrators, it contacts the clients and takes over from there.

On the downside, the administrators say that the investigation into the client monies’ deficit of $2.91 million is still ongoing. No distributions of client funds are possible until this investigation is complete. However, the progress and outcome of this investigation do not affect the work of the FSCS and the repayments from FSCS to ex-LQD Markets clients.

There is also an update regarding company debtors, that is, clients who owe money to the broker due to the losses they suffered as the Swiss franc was unpegged on January 15, 2015. There are 31 such clients of the broker but the administrators have decided not to pursue debtors with balances of less than £250. This takes the number of debtors to 12. They collectively owe £382,576. The administrators have instructed debt collection professionals to collect the money owed.

Regarding unsecured creditors (have in mind that the 223 introducing brokers of LQD Markets are treated as such), the administrators note that they do not expect there to be sufficient realizations of the broker’s own assets to enable distribution of this type of creditors.

You can view the full list of documents associated with LQD Markets’ administration by clicking here.

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