FX Antitrust Litigation

FX Antitrust Litigation: FOREX Benchmark Rates Antitrust Litigation

A Partial Settlement in In re Foreign Exchange Benchmark Rates Antitrust Litigation has been established.  On December 15, 2015, the Court entered the Preliminary Approval Order approving the Settlements and certifying the Settlement Classes. The claims filing deadline for this settlement has yet to be determined.

Overview:

The complaint alleges that beginning at least as early as January 1, 2003, Defendants conspired to fix prices in the FX market on a daily basis. Defendants’ conspiracy targeted the pricing of over two dozen currencies, including the most heavily traded currency pairs, throughout each trading day. Specifically, Defendants’ conspiracy encompassed: (1) price fixing of bid/ask spreads; (2) price fixing various benchmark rates, including, but not limited to, WM/Reuters benchmark rates and the ECB reference rate; and (3) other collusive conduct, such as triggering client stop-loss orders and limit orders. In fact, it was widely reported that UBS traders interrogated by FINMA officials agreed that the anti-competitive conduct alleged was common practice.

Claims Filing Deadline:March 22, 2018
Case Name:In re: Foreign Exchange Benchmark Rates Antitrust Litigation
Preliminarily Approved Settlement Fund:$2,310,275,000
Class Period:January 1, 2003 through December 15, 2015

Complexities of Transaction Data:

Most, if not all of these instruments do not have uniform securities identifiers and many traded over the counter. These factors complicate the process for filing claims in this settlement fund and any related future settlement funds that are established. Battea will utilize its extensive experience gained through years of developing the software and infrastructure used in the trading of foreign exchange financial instruments, together with its proprietary search methods, to analyze all transaction data and identify eligible transactions and perfect claim filings on behalf of our clients. As we do in all cases, Battea will work with class counsel and the claims administrator to justify all claims and defend any deficiencies.

Battea’s Depth of Foreign Exchange (FX) Knowledge:

As a result of the Battea team’s deep expertise in derivatives and foreign exchange transaction data and systems, we have been consulted as experts by lead counsel in derivatives and foreign exchange-based litigation. Prior to joining Battea, our leadership team developed and deployed a leading foreign exchange (FX) trading system for use by proprietary trading desks at global banks and interbank brokers. With several patents under their belts, our product and software development teams have unparalleled skill in dealing with the complex financial data involved in this case. Our team also includes a former CFO of a leading foreign exchange interbank brokerage firm and former bank FX trader. This combination of leading FX business and technical professionals gives Battea clients an edge in achieving accurate and defensible claims filings in complex cases like the Foreign Exchange antitrust settlement.

Eligible Transactions:

Types of FX Instruments and FX Exchange Traded Instruments:

The transactions eligible to make a claim in this specific settlement fund include the following types of FX Instruments and FX Exchange Traded Instruments:

  • FX Spot Transactions
  • FX Forwards
  • FX Swaps
  • OTC FX Options
  • FX Futures
  • Options on FX Futures
  • Other FX Products

Eligible Parties:

Direct Settlement Class: All persons who, between January 1, 2003 and December 15, 2015 entered into an FX Instrument directly with a Defendant, a direct or indirect parent, subsidiary, or division of a Defendant, a Released Party, or co-conspirator where such persons were either domiciled in the United States or its territories or, if domiciled outside the United States or its territories, transacted one or more FX instruments in the United States or its territories.

Exchange Only Settlement Class: All persons who, between January 1, 2003 and December 15, 2015 entered into FX Exchange Instruments where such persons were either domiciled in the United States or its territories or, if domiciled outside the United States or its territories, entered into FX Exchange Traded Instruments on a U.S. exchange.