Bankrupt FX firm LQD Markets underestimated its client debt by $1.5 million – real amount owed is $3 million
17 February 2017, 09:21
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LQD Markets omitted to report debts owing to 143 additional clients to the administrators, and as a result, RSM had to investigate this through third parties such as banks and the company’s prime broker.
Over a year and a month has passed since Liquid Markets (LQD Markets) became a casualty of the extreme and unprecedented volatility which was caused by the Swiss National Bank removing its 1.20 peg on the EURCHF currency pair, and today the Joint Special Administrator, RSM Restructuring Advisory LLP (formerly Baker Tilley), has released a second progress report on the insolvency of the company.
The report, which has been authored by Matthew Robert Haw, Graham Bushby and Matthew Richard Meadly Wild of RSM Restructuring Advisory in Central London, covers the period between August 2, 2015 and February 1, 2016.
LQD Markets, operated by FX entrepreneur Nick Bang, went into insolvency at the end of January 2015 after its exposure to negative client balances as a result of the Swiss black swan event created a situation where its cash position was not recoverable. [Read more... http://snip.ly/n51zp ]
