Professional Trader Claims
Individuals who make their living either trading for their own account or an institution have different needs than passive typical investors. All investors are relying upon their broker for giving them accurate pricing information, but for professional traders it goes much further. Real time, accurate pricing data is critical for many professional traders who are trading around very thin margins. Trades that get executed even minutes after they are entered can have devastating consequences for trades. The firm’s treatment of margin levels and liquidation protocols if there is a margin call matter tremendously. If a firm’s liquidation systems favor the firm over the client, the differences can be huge in the outcome.
Our trading fraud attorneys have a wide range of experience. We are experienced trade execution lawyers in algorithmic trading fraud, hedge fund fraud, and more.Algorithmic Trading Fraud
Trading conducted by algorithms has opened up arbitrage and other investment opportunities that were impractical or cost prohibitive in earlier times, due to a combination of the complexity of the trading and the volume of trades typically necessary to become profitable at incredibly small margins and high leverage. These strategies can fail and result in claims where, for example, the algorithm is inherently flawed and incapable of fulfilling the promises its creators made, or where the firm clearing the trades fails to do so correctly.Hedge Fund Traders
Hedge funds are pools of capital from various investors, used by traders (also called Portfolio Managers) to generate profits in financial markets. However, despite these traders sophistication and experience in making investment decisions, they are still ultimately reliant upon a brokerage firm to hold the assets, clear trades, and manage margin balances. Where the firm fails to fulfill those duties, the Hedge Fund itself may have a claim.