FXCM explains lack of answer to complaint in a client lawsuit

Maria Nikolova

The action brought by former client Vantalie Nguyen is about to be stayed with regard to Global Brokerage, FXCM Holdings, Forex Capital Markets LLC, Drew Niv and William Ahdout.

fxcm

One of the questions concerning the legal action against Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, following the events from February 2017, is the apparent lack of response by the broker and its principals to complaints in a number of such actions. In one of the cases, the one brought by a class of plaintiffs led by hedge fund 683 Capital Partners, we recently got an update, as FXCM’s attorneys are building a “mega” defense.

But there have been other cases against the broker, like the one brought by a group of former clients led by Vantalie Nguyen. In this particular action, FXCM, along with Drew Niv and William Ahdout, were supposed to file their answers by June 23, 2017.

Israel Dahan, who represents FXCM Inc., Forex Capital Markets, LLC, FXCM Holdings, LLC, Dror Niv, and William Ahdout (the so-called “FXCM Defendants”) in the case launched by Nguyen, has just filed a letter to the Judge assigned to the case, explaining the reason for the lack of reaction to the Plaintiffs’ Complaint.

The Letter, seen by FinanceFeeds, informs the court that the Plaintiff and the FXCM Defendants have been in negotiations. They will be jointly filing, very shortly, a stipulation to be so ordered by the Court staying the Action with respect to the FXCM Defendants. This is pending resolution of an individual arbitration proceeding Plaintiff intends to file against all or certain of the FXCM Defendants in line with the FXCM Client Agreement executed by Plaintiff.

Vantalie Nguyen has launched the case on behalf of former FXCM clients who traded on the “NDD” platform offered by the broker and claim to have suffered damages as a result of the broker’s undisclosed interest in Effex Capital.

On top of the “FXCM Defendants”, the case names Effex Capital and its CEO John Dittami among defendants too.

Mr Dittami and Effex Capital have recently been granted another time extension to respond to the complaint by the plaintiffs. They have until September 1, 2017 to file their answer.

One of the possible reasons for the extension request is that the counselors for Effex and its CEO would like to see the developments around another case – Effex Capital, LLC et al v. National Futures Association et al. The latter alleges that NFA revealed Effex’s trade secrets and caused harm to the company by posting the news release and complaint concerning FXCM and its alleged relations with Effex on February 6, 2017. Effex Capital and Dittami are now requesting that the Court directs NFA to remove and/or amend the materials involving Effex from its website.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<