A third Danish authority body, the Danish Complaint Board of Banking Services, has cleared Saxo Bank, a Danish bank specialized in providing online trading services, of any wrongdoings related to the way it handled the aftermath of the Swiss franc (CHF) crisis in early 2015, finance news provider Finance Magnates reported.
In January 2015, the Swiss National Bank (SNB) unpegged the CHF from the Euro (EUR), which shook the markets globally and affected the performance of many forex brokers.
“The Danish Complaint Board of Banking Services concluded in Saxo Bank’s favor saying that Saxo Bank had acted in a way that was fair and correct, and in accordance with the bank’s general terms of business. The board further concluded that the corrected prices contributed to reach the, under the circumstances, best results for clients,” Saxo Bank CFO Steen Blafaalk said, as cited by the media.
Initially, Denmark’s Financial Supervisory Authority (FSA) stated the bank’s actions were not in conflict with the regulations and redirected the case on Saxo Bank’s CHF resettlement to the Danish Complaint Board of Banking Services. According to Finance Magnates, the decision could also have EU-wide implications, due to the creation of a legal precedent.
“We now have conclusions on the matter from three relevant authorities in Saxo Bank’s favor. The conclusions are in line with our expectations and help set the direction for remaining court cases,” Blafaalk also said.
Saxo Bank, set up in Copenhagen in 1992, offers about 30,000 trading instruments, including forex, binary options, contracts for difference (CFDs), stocks, bonds, and futures. The company holds a banking license from Denmark’s Financial Supervisory Authority (FSA). The group operates through its subsidiary companies across Europe, Asia and the Middle East, Australia, South America, and South Africa.