Recently, a group of bank customers complained to AMCM that their margined forex trading contracts were compulsorily squared by their bank. Regarding such complaints, AMCM has started a series of follow-up according to current policy statement relating to complaint handling (access is made possible via our website: http://www.amcm.gov.mo/pledge/ePledge.htm). Initial results of the investigation show that the aforementioned compulsory position squaring was conducted on 17 March 2011 when the market exhibited tumultuous fluctuations arising from the strong earth quake and subsequent nuclear leakage of Japan. Currencies involved included Japanese Yen and Swiss Franc, particularly the Yen. There were 822 customers affected by the incident, of whom some started FX trading with the bank involved as early as 1992, the latest started in June 2010. The above complaints are now being handled by the bank involved. AMCM will follow closely the process and result. We hereby emphasize that should the bank violate the rules, they would be penalized under relevant legislations. At the same time, we would like to specially remind the general public that fluctuations in the FX market are frequent and unpredictable, there are great risks involved. Cautions should be exercised in FX investments, particularly margined FX tradings.
