Credit Suisse, RBS, BNP Paribas seek dismissal of Last Look case launched by Alpari (US)
The banks ask the New York Southern District Court to compel arbitration or dismiss Alpari’s complaints on the grounds of forum non conveniens.
In line with previously announced plans, a number of banks accused by now-defunct Forex broker Alpari (US) of causing it damage by employing “Last Look” practices, have sought to rebuff the plaintiff’s allegations.
In a series of documents filed with the New York Southern District Court on Thursday, December 7, 2017, 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 note 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 say, 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 this year. In October, it dismissed the “Last Look” action against Goldman Sachs.
