Forex Lawsuit – What Is The Forex Lawsuit All About?
The most talked about topic in the FX industry right now is the pending lawsuit of three traders who have created quite a stir amongst the investors of the currency community. These are the “masters of fraud” Michael Freeman, Martin J. Pring among others. Their lawsuit against the world’s largest forex brokerage firm, Interbank Lending Corporation (ILFC) has been in the works for quite some time now and there seems to be a lot of speculations as to what exactly is going on. If you are new to this market, you may want to take note of these following points before investing your money into the FX market:
Out of Control – Recently, the media has been covering the lawsuits against various entities. Among them is the very famous company, FX Solutions, which has recently faced a lawsuit for their role in manipulating the forex rates. They are also facing a suit brought against them by a certain Singapore company that had used their software to manipulate foreign exchange rates. This scandal has brought about a lot of controversies and has shaken the confidence of many investors.
Forex Trading – Many traders have blamed the recent crisis in the US economy on foreign exchange market players. The argument goes that since the market is no longer controlled by large banks or financial institutions, they have resorted to trading openly, which has resulted in a dramatic decline in prices. The result? Lower profits for those players and a widening gap between the creditors and borrowers of currencies.
Lawsuit Date – There have been several different instances of Forex related lawsuits in the past few years. One of them is the lawsuit filed against three international corporations for their alleged roles in the fixing of the Forex rates. Another is the lawsuit brought against the National Association of Securities Dealers for their alleged role in fixing the London Whale trade. Then there is the lawsuit against Credit Suisse AG for its alleged role in the London Whale trade. These are just some of the more prominent lawsuits that had been filed.
The recent lawsuit against Pringles is one of the more interesting ones. This suit was brought by hedge funds for their alleged role in manipulating the Forex markets. Apparently, these hedge funds did not like the way the Swiss banks interpreted the way the contracts were structured. This Swiss company was later fined millions of Swiss francs by the Swiss government for its activities in the Forex market.
If you are thinking of investing in the Forex markets, it is important that you are very aware of the risks involved. However, this lawsuit is not going to scare you off. To be honest, it is quite possible that a lawsuit like this could benefit the current crop of investment managers who can no longer control the volume of the market. Even if the lawsuit proceeds without any results, the lawsuits are going to continue to serve as a reminder to all parties that the Forex market is not free and clear of manipulation. It is up to the individual investor to ensure that he follows the rules of the market and plays fair.