FX Currency Case

retail

The main Spanish banking entities will have the opportunity to participate in one of the largest distributions of compensation derived from a Class Action  with the peculiarity that, in this case, the banking entities will be the ones entitled to receive the compensation.

The claim must be made before March 22 (2018), after which period the entities will lose the right to receive any amount unless the court decides to extend the period for filing claims.

FX: Origin of the matter

A North American Court has agreed to distribute 2,310 million dollars that have been consigned by 15 international banking entities that must be distributed among those who traded certain financial products linked to currencies in North American markets.

The matter has its origin in the so-called "Currency Scandal"  that revealed the existence of certain chats through the agents of these entities, presumably, they agreed to influence the fixing of the exchange rate of the most important currencies.

The entities have consigned the amounts to reach an agreement, despite denying the accusations. An obvious and understandable procedural strategy.

legal basis

The proceeding was based on the alleged violation of Sections 1 and 3 of the Sherman Antitrust Act and the Commodity Exchange Act.

In the first case for conspiracy to fix prices and in the second for manipulation of the currency markets.

Class Period

The Class Period is equivalent to the period during which the transactions that give the right to be compensated were carried out.

In this case, between January 1, 2003 and December 15, 2015.  Any entity that has carried out transactions in the affected instruments will have the right to participate in the compensation.

Eligible Instruments

Eligible instruments are practically any financial product linked to the foreign exchange market issued by any of the defendant entities or that would have been traded in North American markets, cash operations, as well as swaps, futures, and options on them.

Sued entities

The entities that have already reached an agreement (as of March 2018) are Bank of Tokyo, Bank of America, Barclays, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBC, RBS, Société Générale, Standard Chartered and UBS, which each deposited a different amount depending on their degree of participation, reaching the figure of 2,310 million dollars.  Citigroup and Barclays deposited 402 and 384 million dollars respectively.

The judicial procedure continues against the Credit Suisse Group, which has not joined the agreement, so the compensation may increase in the future.

who can claim

The court has established two groups of beneficiaries who are allowed to claim part of the compensation.

from one side  the so-called  “Direct Settlement Group”: comprising those who traded foreign exchange instruments directly with the fifteen defendant entities.

 

On the other hand,  the so-called “Market Arrangement Group Only”, which includes those who traded such instruments with the Credit Suisse Group or traded them directly in the American markets.

how to claim

Cigarrán Lawyers  participates in the team formed to claim such amounts in this procedure, as well as in the more than 200 Securities Class Actions that are initiated annually in the United States, whose main beneficiaries are the investment fund managers.

If you want more information, please contact us .