Not upheld: Investment mis-selling complaint against Saxo Capital Markets UK Ltd

Decision detail

Summary

Mr S, a professional client with Saxo Capital Markets UK Ltd, complained about the execution price of an options trade on 7 November 2024. He placed a market order to buy 4 lots of a call option expecting a price around $0.30-$0.50 but the order filled at $7.90, costing him approximately $2,000. Mr S argued that Saxo should have rejected the price, indicated the executable price, or contacted him, and questioned whether the trade was executed on market. The ombudsman found that $7.90 was a genuine market offer at the time of execution and that Saxo correctly executed the market order at the best available price. The ombudsman concluded that the unfavourable execution resulted from Mr S's decision to place a market order during volatile market open conditions and that Saxo had no duty to interfere with the client's instruction on an execution-only account. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged Mr S's frustration but concluded that Saxo did not breach any duty of care. The market order was executed at the best available price in the market at the time ($7.90), which was a genuine offer. While the price was significantly higher than expected, this was a consequence of Mr S's decision to place a market order during market open volatility when liquidity was thin. The ombudsman noted that Mr S, as an experienced trader, understood the nature of market orders and had access to live pricing that would have shown the available offers. The ombudsman rejected the argument that Saxo should have interfered with the trade, as this would introduce delay and disadvantage clients in other circumstances. The execution-only nature of the account meant Saxo had no obligation to intervene.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website