IG Securities Japan Order Fill Problem
IG Securities Limited, the Japanese foreign exchange and contracts for difference (CFD) broker of IG Group, has told customers an order problem is resolved while it is still working out whose trades were affected. An order fill is the price and size at which an order is executed.
From around 3.30am Japan time on Thursday 29 October until around 5.30am, some orders were filled at prices different from the intended price, or execution was delayed. The problem lasted about two hours and was resolved around 5.30am. Execution is the step that turns an order into a trade.
The notice apologises to customers and points them to the support desk. It carries a date but no time, and it does not mention a regulator.
On who was hit, the notice says:
Identification of the affected customers and confirmation of their trades is still under investigation. Customers who need to be dealt with will be contacted individually.
IG Securities Limited notice (translated from Japanese)
Customers cannot tell from the notice whether they will be contacted. It gives no cause, no number of customers or orders, no products or platforms, and no price or quantity for the incorrect fills. It states no cancellation, correction or compensation, and no deadline.
For a head of trading, risk or operations at another regulated broker, the notice raises two tests. The first is evidential: could the firm show, order by order, that a fill differed from the price the customer intended?
The second is speed: how quickly could the firm identify and contact each affected customer? Until IG says what it will do about the incorrect fills, the remedy question stays open for clients.
