FSCS’ payouts to customers of defunct broker LQD Markets total $2.89m

Maria Nikolova

The Special Administrators of LQD Markets (UK) have just posted their 8th progress report.

The Special Administrators appointed at LQD Markets (UK) Ltd, a retail Forex broker that went insolvent soon after the January 15, 2015 events, have just published their 8thprogress report, covering the progress of the administration in the period from August 2, 2018 to February 1, 2019.

As previously guided, the Special Administrators have instructed lawyers to commence with the application to Court to request that a bar date is set for clients to submit claims and to commence the client monies distribution process.

The Special Administrators have been in touch with the Financial Conduct Authority (FCA) to make sure that the application will comply with the Client Assets Sourcebook (CASS) rules. The FCA advised that the proposed bar date application required modifications to the CASS rules. The Special Administrators worked with their legal advisors and the FCA to make an application to modify the CASS rules. The formal application was submitted on February 15, 2019 and the administrators are now awaiting the outcome of the application from the FCA.

Assuming the modifications are approved by the FCA we will then apply to Court for approval of the Bar date mechanism to distribute funds.

It is anticipated that the distribution will be made in Euros for the benefit of clients.

The Joint Special Administrators continue to review and agree clients’ claims with a view to them making a claim to the Financial Services Compensation Scheme (FSCS) for compensation under the terms of the scheme. To date, the administrators have agreed 557 clients’ claims totalling approximately US$4,416,364. These claims have been sent to the FSCS to give clients an opportunity to assign their claims to the FSCS and make an application for compensation.

Once an agreed claim has been sent to the FSCS, the administrators do not have any further involvement in the process regarding payment of any compensation to the client under the terms of the scheme.

The FSCS last advised that they have paid out 343 claims, totalling US$2,888,493.

Following the special administrators’ appointment, client funds of £1,407,615.70 were transferred to the Special Administration accounts.

Where necessary the Administrators have continued adjudicating on clients’ claims and responding to client queries specifically relating to the compensation process. Once a client’s claim has been agreed, their details are passed to the FSCS who then send the client an application form to enable them to assign their claim to the FSCS and subsequently apply for compensation.

Whereas the Administrators will continue to assist the FSCS, the compensation process is being dealt with independently by the FSCS. Therefore, clients of LQD Markets are advised to continue to contact the FSCS directly to pursue their application form and compensation at [email protected] or on +44(0)207 741 4100 or Freephone if in the UK 0800 678 1100, rather than contacting the Special Administrators, as dealing with these queries has increased the costs incurred.

  • Read this next


    Volt secures EMI license, expands payment solutions in UK

    Volt has successfully obtained an Electronic Money Institution (EMI) license from the UK’s Financial Conduct Authority (FCA).

    Retail FX

    ASIC bankrupts finfluencer Tyson Scholz over stock tips

    The Australian Securities and Investments Commission (ASIC) has effectively bankrupted Tyson Robert Scholz, the figure behind “Black Wolf Pit.” The action marks a significant crackdown on so-called ‘finfluencers’ and individuals providing unlicensed financial services.

    Digital Assets

    Green Bitcoin Presale Raises $1M as Bitcoin Approaches its ATH

    The eco-friendly crypto project Green Bitcoin has seen its limited-time presale phase cross $1 million in funding. With an innovative gamified staking model and energy-efficient foundation, Green Bitcoin offers token holders a way to stake their tokens and generate yield.


    Introducing QuickNode Streams: Elevating Blockchain Data Management

    Discover QuickNode’s Latest Innovation: Streamlining Blockchain Data Streaming for Enhanced Efficiency and Accessibility. Explore the Future of Blockchain Technology with Streams.

    Industry News

    John Oliver rips into MetaTrader over role in ‘Pig Butchering’ scams

    “If your friend told you to download an app, and you saw it in the app store with good reviews, you might assume everything on it was legitimate. In before, you saw MetaTrader’s logo which looks like three men in suits jerking each other off under a table – an appropriate metaphor for cryptocurrency if I have ever seen one,” Oliver quipped.

    Digital Assets

    Coinbase supports Nethermind and Erigon to ease Geth dependency

    Coinbase plans to support additional execution clients as America’s largest crypto platform aims to improve the Ethereum blockchain’s resilience and mitigate the risks associated with the network’s heavy reliance on a single client.


    How AI Transforms Trading: Current Trends and Perspectives

    In 2023, we observed a boom of news about Artificial Intelligence (AI) in every field, whether finance, tech or medicine. In 2024 and later, AI will take an even more significant place.

    Industry News, Uncategorized

    FCA wants to tackle lack of competition in wholesale data market

    “Complex licensing practices by MDVs and trade data providers who deliver their data through MDVs increase costs for data users. Many Market Data Vendor (MDV) users have to hold licences both from the data generator (such as a trading venue) and from the MDV through which they access data. We have seen an increasing proliferation of licences for similar data types and different use cases. Complexity also drives additional costs for data users, such as operating a compliance team.”

    Digital Assets

    SEC objects to Terraform’s $166 million legal retainer

    The U.S. Securities and Exchange Commission (SEC) has lodged objections against Terraform Labs for a $166 million retainer payment to its legal representatives ahead of its trial.