Liquidators of New Zealand FX broker LQD Markets grapple with assets recovery

Maria Nikolova

The major asset still to be released appears to be a debt due from LQD Markets (UK) Limited – currently in administration.

Although the “Black Swan” events from January 2015 may seem to belong to the past, for some companies and their clients they still determine an active part of their present. Such is the case with Liquid Markets, a now-defunct FX broker with operations in several countries, including the UK and New Zealand. The company filed for administration shortly after the January 15, 2015 events.

Administrators (and liquidators) of LQD Markets (UK) Limited and New Zealand-based LQD Markets Limited continue to push for the realization of assets, investigating into what led to the huge client money deficit and into working with client claims.

The latest report by Gerry Rea Partners, liquidators of New Zealand’s LQD Markets Limited, does not provide an optimistic piece of news to the shareholders and creditors of the now-inactive broker. Realizations for the liquidation to date (the period covered by the report is from September 12, 2016 to March 12, 2017) amount to humble NZ$5,145, whereas the funds on hand in the liquidators’ trust account total NZ$452.

This compares with outstanding creditors’ claims exceeding NZ$1.29 million.

The report notes that the major asset yet to be realized appears to be a debt due from LQD Markets (UK) Limited which is in administration. A creditors claim has been filed in the administration and Gerry Rea have been appointed to the creditors committee of LQD Markets (UK) Limited. There remains a shortfall in assets which the liquidators continue to investigate.

The liquidators also highlight that the broker’s records were not up to date. 29 additional creditors have come to light although not all have made a claim.

Given the outstanding matters, Gerry Rea Partners say that at present it is not possible to estimate the date of completion of the liquidation.

The report by Gerry Rea Partners is released less than a month after the Joint Special Administrators from RSM have published their Fourth Report into LQD Markets (UK) – the document covers the period from August 2, 2016, to February 1, 2017.

To date, administrators from RSM have agreed 555 client claims for an approximate amount of $4.38 million. That does not seem like much of a progress being made, as a year earlier, the JSAs said they had agreed to the claims of 546 clients for a sum of $4,342,982.11. The latest report confirms that the client deficit is $2,911,894.60, well above the sum estimated shortly after the broker filed for administration.

Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch

XBO.com has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.

<