Baker Tilly has been appointed Special Administrator to LQD Markets (UK), after the shock changes in the Swiss Bank rules surrounding the pegging of the franc to the euro sent the broker into arrest. The administrators will inform clients and creditors about the process around the return of funds.
LQD Markets (UK), also known as Liquid Markets, is an in 2006 founded European online forex and CFDs broker. The firm focuses on premium brokerage services to individual and corporate clients through its customized MetaTrader 4 platform.
Following the unpegging of the Swiss franc from the Euro*, rapid and unexpected changes in market dynamics placed LQD Markets in financial straits. Markets LQD consulted with the Financial Conduct Authority (FCA) and applied for a number of requirements to be laid upon them by the FCA, to which the authority assented. As part of the conditions, the company would cease entering into new client transactions and all of open positions were to be closed. In a bid to save the viability of the business, steps were taken to identify ways in which the business could be recapitalised, unfortunately the bids were unsuccessful and to protect creditors and clients the company applied for an order to place its business into Special Administration.
By order of the UK High Court, Matthew Haw, Graham Bushby and Matthew Wild of Baker Tilly’s Restructuring and Recovery practice have been appointed as Joint Special Administrators of LQD Markets. Their role, according to Baker Tilly's press release, will be to talk to clients and creditors regarding information pertaining to the administration as well as the steps and processes creditors and clients will need to go through to register a claim owed. As it stands the clients’ funds have been pooled, with the administrators tasked with realizing the release of funds to entitled clients on a pro-rata basis.
* The decoupling of the franc from the Euro prompted volatility across foreign exchange markets and brought with it a wave of losses and insolvencies to forex brokers. Other examples include UK-based FX broker Alpari that went into insolvency after it exceeded its account equity and New York-based FXCM brokers that also got into strife, after finding it owed $225 million to its clients.