Prime-of-prime broker iS Prime and retail
FX/CFDs broker ThinkMarkets have reached a last-minute settlement on the
longstanding exclusivity deal lawsuit between them. The deal was struck on
Tuesday, which was the day the case was expected to go to trial at a UK court,
Law360 first reported.
iS Prime and
ThinkMarkets Battle in Court
In 2017, iS
Prime’s risk management unit, iS Risk (formerly known as IS Prime Risk Services) acquired ThinkMarkets’
Think Liquidity, a risk management service. However, in a court case that ensued, IS Prime
filed a lawsuit against ThinkMarkets, demanding $15 million in damages from ThinkMarkets. The prime-of-prime brokerage accused the retail forex broker of breaking their exclusive ‘liquidity agreement’ reached during the acquisition by using the
services of other brokers between January 19, 2017, and January 19, 2020, for
its trade execution.
However,
ThinkMarkets dismissed the claim, saying that it received an email from iS
Prime on December 8, 2017, informing it that the execution services provider was transferring its swap business to its Hong Kong affiliate, effective December 18. ThinkMarkets claims that as a result of this, IS Prime ceased to
trade index swaps, and thereby discharged it of its obligation under the
agreement with regards to that particular product class. However, iS Prime
disagreed with this position, arguing that existing terms of trade between both firms continued
in full force.
In May last
year, a British court during a second hearing on the case rejected iS Prime’s
attempts to strike
out part of ThinkMarkets’ counterclaim. Earlier in March, a court also ruled that the former’s legal action against the
latter “insofar as it relates to the trading of index swaps after 18 December
2017, has no real prospect of succeeding.”
iS Prime
Demands Retraction
In a
statement shared with Finance Magnates on Wednesday, iS Prime expressed
satisfaction about the terms of the settlement it reached with ThinkMarkets, noting
that the compromise vindicates its position. However, only one of the terms of
the deal was disclosed to Finance Magnates.
“[The terms of the settlement] include a formal written retraction of the incorrect and ill-founded
allegations made against it [iS Prime] by ThinkMarkets and their Head of Compliance,
Mohammed Adil Siddiqui, which can be provided to our clients,” explained iS Prime.
“The
outcome is a clear vindication of iS Prime’s position. iS Prime will move
on, continuing to provide the outstanding service to our clients which we have
always provided,” the prime-of-prime broker added.
News Nuggets Special: highlights from FMAS 23; read today’s news nuggets.
Prime-of-prime broker iS Prime and retail
FX/CFDs broker ThinkMarkets have reached a last-minute settlement on the
longstanding exclusivity deal lawsuit between them. The deal was struck on
Tuesday, which was the day the case was expected to go to trial at a UK court,
Law360 first reported.
iS Prime and
ThinkMarkets Battle in Court
In 2017, iS
Prime’s risk management unit, iS Risk (formerly known as IS Prime Risk Services) acquired ThinkMarkets’
Think Liquidity, a risk management service. However, in a court case that ensued, IS Prime
filed a lawsuit against ThinkMarkets, demanding $15 million in damages from ThinkMarkets. The prime-of-prime brokerage accused the retail forex broker of breaking their exclusive ‘liquidity agreement’ reached during the acquisition by using the
services of other brokers between January 19, 2017, and January 19, 2020, for
its trade execution.
However,
ThinkMarkets dismissed the claim, saying that it received an email from iS
Prime on December 8, 2017, informing it that the execution services provider was transferring its swap business to its Hong Kong affiliate, effective December 18. ThinkMarkets claims that as a result of this, IS Prime ceased to
trade index swaps, and thereby discharged it of its obligation under the
agreement with regards to that particular product class. However, iS Prime
disagreed with this position, arguing that existing terms of trade between both firms continued
in full force.
In May last
year, a British court during a second hearing on the case rejected iS Prime’s
attempts to strike
out part of ThinkMarkets’ counterclaim. Earlier in March, a court also ruled that the former’s legal action against the
latter “insofar as it relates to the trading of index swaps after 18 December
2017, has no real prospect of succeeding.”
iS Prime
Demands Retraction
In a
statement shared with Finance Magnates on Wednesday, iS Prime expressed
satisfaction about the terms of the settlement it reached with ThinkMarkets, noting
that the compromise vindicates its position. However, only one of the terms of
the deal was disclosed to Finance Magnates.
“[The terms of the settlement] include a formal written retraction of the incorrect and ill-founded
allegations made against it [iS Prime] by ThinkMarkets and their Head of Compliance,
Mohammed Adil Siddiqui, which can be provided to our clients,” explained iS Prime.
“The
outcome is a clear vindication of iS Prime’s position. iS Prime will move
on, continuing to provide the outstanding service to our clients which we have
always provided,” the prime-of-prime broker added.
News Nuggets Special: highlights from FMAS 23; read today’s news nuggets.
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