Not upheld: Other regulated complaint complaint against Saxo Capital Markets UK Ltd

Decision detail

Summary

Miss T complained that Saxo incorrectly closed her CFD positions in EURJPY and Tesla on 17 December 2024 due to a technical error, and sought reinstatement of the positions. She argued that her sell order should have been prioritised before the stop out and that deposits she made should have been processed faster to provide sufficient margin. The ombudsman found that Miss T placed her sell order after margin utilisation had already breached 100%, meaning the automatic stop out had already been initiated. The lack of a trade confirmation pop-up box evidenced that the order was not executed because the stop out occurred between placement and execution. The ombudsman also found that Saxo's automated deposit processing system functioned correctly and that the second deposit arrived after the margin breach. Saxo's actions complied with FCA regulations, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Miss T placed her sell order after margin utilisation had already breached 100%, meaning the automatic stop out process had already been initiated. The absence of the 'Trade confirmation' pop-up box evidenced that the order was not executed because the stop out occurred between the order placement and execution. The ombudsman rejected Miss T's argument that the system should manage two activities simultaneously, finding that the automated system most likely initiated the stop out before the order could be executed. Regarding deposits, the ombudsman found that Saxo's system automatically credited funds when received and that the second deposit arrived after the margin breach, so it could not have prevented the stop out. Saxo's actions complied with FCA regulations requiring position closure when margin requirements are breached.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website