XTB statement on asymmetrical deviation

In recent days, the interest in asymmetric deviation on the Polish trading scene (PST) has grown dynamically. This is primarily the result of the activities of the Trading Jam Foundation, which issued 6 demands to XTB and the Polish Financial Supervision Authority - we presented in a separate article here. Representatives of PST joined the action, awaiting explanations and reactions from X-Trade Brokers.

We remind you: The decision of the Polish Financial Supervision Authority to punish the broker was taken over a year ago, however the broker appealed against the decision in the Provincial Administrative Court, which upheld the penalty. The further fate of the case is currently pending in the Supreme Administrative Court.

Be sure to read: Asymmetrical deviation - Why do brokers cheat and we agree to it (?)

Below we publish the official statement Dom Maklerski X-Trade Brokers SA, which refers to the demands of traders and the allegations made.

XTB statement

Ladies and Gentlemen,

Due to the fact that in recent days, false information about the company and the manner in which it provides brokerage services in 2014-2016 has been disseminated in the public space, the management board of XTB deems it necessary to speak on this matter and present the company's position. People involved in disseminating false information use a one-sided and distorted narrative by allowing on their online forums to publish half-truths and provoke attacks not only against our company, but also our long-term business partners and employees. Therefore, XTB will soon take decisive action against the people and institutions responsible for these reprehensible practices.

At the same time, with all firmness and responsibility, we would like to emphasize that the use of the asymmetrical mechanism for performing instant orders was not a cause of damage on the clients' side or profit on our company's side, which is confirmed by numerous independent analyzes.

As a result of the company's control, the PFSA recognized, among others, the asymmetrical model of executing some of the instant orders, among others that the mere fact of not informing clients in contractual documents about the rules of the transaction system exhausted the necessary conditions for imposing a financial penalty. The Polish Financial Supervision Authority did not determine whether specific clients suffered actual damage in this connection. The Provincial Administrative Court essentially confirmed this thesis in the justification of its later judgment regarding the company.

In addition, understanding the seriousness of the situation and caring for the highest standards, we commissioned successful scientists and consulting companies to prepare independent and objective expertise in determining the impact of the asymmetrical instant order model on clients' results. Obtained expertise from  specialists from the Department of Insurance and Capital Markets at the Institute of Finance of the University of Szczecin and the Department of Financial Markets at the Faculty of Economics of Maria Curie-Skłodowska University as well as reputable consulting companies Ground Frost and Roland Berger are clear in their conclusions. They consistently show that there is no link between the past execution model for this type of order and the financial performance of clients. From this perspective, XTB offered clients some of the best trading conditions in the market through advanced trading platforms, ensuring excellent execution times. That is why - also supporting ourselves with the authority of independent experts - we believe that there was no action to the detriment of our clients.

In addition, we would like to point out that the use of the asymmetrical deviation parameter for years was a normal and common market practice aimed at accelerating the execution of orders and reducing the number of rejections. The Polish Financial Supervision Authority only until 24 on May 2016,  pursuant to Resolution No. 352 / 2016, adopted Guidelines on brokerage services on the OTC derivatives market and thus obliged entities providing brokerage services to implement them by 30 on September 2016, including the implementation of a symmetrical model of order execution. According to the best knowledge available to us, it is XTB,  as the first brokerage house in Poland providing services on the forex market, it adapted the execution model to the one required by these guidelines. This happened already in the middle of 2015, almost a year before the publication of relevant resolutions by the PFSA.

We would like to emphasize our openness to clarify any doubts related to the above topic and we encourage you to contact us directly in case of questions.

The Management Board of X-Trade Brokers Dom Maklerski SA