|Unvouch||Member Since Jan 19, 2016 23 postsebokai 7 Hours ago (edited 6 Hours ago )
Official statement by Priorfx:
Following up on our previous correspondence regarding the GBP “Flash Crash”, we would like to inform you that our team is currently investigating all accounts affected by this unfortunate incident.
The delay is due to the high amount of orders (above 250 000) that are being checked against the records provided by our liquidity providers.
As we are still receiving enquiries from some of our clients we would like to offer additional clarification concerning two major issues:
Why some clients were closed differently; and
Why account balances were changed afterwards.
During the force majeure situation of the 7th October 2016 the system started closing orders at the 45% drawdown level as it should be. But there was practically no market on the opposite side and some banks have withdrawn themselves in such unpredictable circumstances. As soon as some opposite direction orders appeared the system started closing orders gradually on the available liquidity.
Trying to save clients’ funds PriorFX took extraordinary measures to close open positions manually at approximate prices which took some time and contributed to the difference in closing prices although saving a substantial amount of clients’ funds which otherwise would have been wiped out by the sharply falling GBPAUD pair.
During the weekend after the GBP flash crash our team made corrections from artificial prices to actual prices that the orders have been executed at.
These steps helped to limit further losses. Therefore PriorFX has fully met its obligation to provide best execution to its clients at the best price available on PriorFX’s liquidity at that moment.
Therefore, the difference in the levels for losses of different investors is caused by a combination of several factors: force-majeure drop of GBP being the major one, very shallow or non-existing liquidity on the opposite side of the market, huge number of very small orders, difference in deposit size and time of joining the Sector 1 system, different closing quotes provided by different liquidity providers etc.
PriorFX would like to assure you that we put all our efforts in having the investigation finished within the shortest time possible and that once the final results are ready we will get back to you.
We apologise for any inconvenience that this may have caused you, and we appreciate your patience and understanding in this matter.
If you have any questions please do not hesitate to contact Our Support Team on +357 2525 8220 or email us at email@example.com
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