Alpari (US) has to arbitrate “last look” case against RBS, BNP Paribas, Credit Suisse

Maria Nikolova

Judge Lorna G. Schofield of the New York Southern District Court agreed with the banks that the case must be arbitrated.

The “Last Look” case brought by now-defunct Forex broker Alpari (US) against a number of major banks has reached a crucial point, as Judge Lorna G. Schofield of the New York Southern District Court has agreed to grant the banks’ motion to compel arbitration.

The respective order, seen by FinanceFeeds, was signed on June 12, 2018.

The Judge agreed with a motion by the banks filed in December last year. Back then, Credit Suisse Group AG (VTX:CSGN), Credit Suisse AG, Credit Suisse Securities (USA), LLC, Royal Bank of Scotland Group plc (LON:RBS), RBS Securities Inc., and BNP Paribas SA (EPA:BNP), moved the Court to either compel arbitration on Alpari’s complaints or to dismiss the case altogether.

The defendants noted that Alpari (US) was a registered member of the National Futures Association (NFA) from November 14, 2007 to April 21, 2015. As a member, they said, Alpari is bound by the NFA Member Arbitration Rules. Under those rules, the dispute between Alpari and the defendants, which are also NFA members, or principals of members, shall be arbitrated. Accordingly, the Court should compel arbitration.

Even if the NFA rules did not mandate arbitration, the defendants argue, Alpari (US) would be precluded by contract from prosecuting its claims in the New York Southern District Court. Alpari’s dealings with the defendants were pursuant to written agreements, including pricing and liquidity agreements and prime brokerage agreements, that govern the resolution of disputes. Although the terms of the agreements with each defendant differ in certain aspects, a common thread is that they require Alpari to resolve its claims in arbitration or the courts of England.

This is the so-called “forum non conveniens” doctrine. It means “an inconvenient forum” or “a forum not agreeing” and typically implies an argument about jurisdiction, that is, that there is a court better suited to hear the case than the current one.

All of the banks are alleged to have caused damage to Alpari (US) and other FX market participants as a result of the use of “Last Look” practices. All of the defendants are accused of breach of contracts on their proprietary trading platforms, breach of contracts on ECNs, as well as of unjust enrichment.

The list of defendants in “Last Look” cases brought by Alpari (US) had been longer but the broker dropped the action against Citi and Morgan Stanley in September last year. In October, it abandoned the “Last Look” action against Goldman Sachs.

The Clerk of Court is now directed to stay the cases against RBS, BNP Paribas and Credit Suisse.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro,

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.