Matthew Haw, Graham Bushby and Matthew Wild of Baker Tilly restructuring and recovery have been appointed as joint special administrators to foreign exchange broker LQD Markets (UK) Ltd by order of the High Court
Online brokerage services firm LQD Markets experienced trading difficulties following the surprise decision last month by the Swiss National Bank to remove the informal peg between the Swiss franc and Euro which prompted volatility across foreign exchange markets and has seen a number of UK forex brokers report severe financial difficulties.
The firm was licensed and regulated by the Financial Conduct Authority (FCA) and following consultation with the regulator applied for a number of requirements to be imposed on its business. One of these was that the company ceased entering into any new transactions with clients and for all open positions to be closed.
The company explored alternative options to recapitalise the business, but when these proved unsuccessful says it applied to go into special administration in order to protect the clients and creditors.
Baker Tilly said the joint special administrators are now working to reconcile the client positions and to facilitate the release of client funds as soon as practicable. They will shortly be writing to clients and creditors to provide them with additional information relating to the administration and to explain how the process will proceed and what they are required to do to register their claim.
The firm has also set up a dedicated microsite at www.bakertilly.insolvencypoint.com/1069879 for updates.