The position of the XTB Management Board on the charges raised

Yesterday, the Polish Forex market has failed. Polish Financial Supervision Authority accused the largest Polish Forex broker, XTB, for manipulation in the execution of orders. More precisely, it concerns the transactions from 2014-2015 and the asymmetrical price slippage. According to the allegations, the company was supposed to act to the detriment of its clients by "funding" them only negative slips, without the possibility of obtaining a positive slippage. Today, the management board of the brokerage house refutes the allegations by providing extensive explanations.

"We do not agree with the comments of the Polish Financial Supervision Authority"

In an interview given to Comparic.pl, the representative of the company's Management Board refutes the accusations and informs that reservations have been made regarding the accusations made:

“We do not agree with the comments of the Polish Financial Supervision Authority. We submitted extensive substantive and legal reservations as well as detailed analyzes to the Commission, pointing to the groundlessness of the comments in the protocol after the inspection. We implemented all the recommendations of the Commission immediately, while maintaining in full our objections to the report after the KNF inspection. "

As a result of yesterday's reports, the XTB course dived equally at 40%. Today, it is making up for losses and at the moment it is gaining around 9,5%, however, positive financial results for the third quarter, which were published today, also help in this.

XTB share price from last 6 months

Who is the next under the supervision of the KNF?

According to the findings of the Puls Biznesu, the Commission will not stop at XTB. PB in today's article says that until last year, asymmetrical slips were also used by other Polish Forex brokers operating in the Market Maker model. So the question is - who's next?

Jacek Barszczewski, KNF spokesman:

"The finding that investment firms use practices that are inconsistent with the provisions of the law will result in the PFSA taking appropriate actions".

During unofficial talks, representatives of Polish FX brokers indicate that until recently the defense arguments used by XTB were also used by the Polish Financial Supervision Authority. This is a supervisory control in the context of the application of the "best execution" principle, introduced by ESMA in 2014.

We are waiting for the further development of events.