Five Ways Our Technology and Expertise is Providing Real Value to Clients for the Forex Antitrust Litigation

Last month, investors’ attention focused on preparing and filing for the Forex Antitrust Litigation – one of the largest ($2.3 billion) and most complex antitrust settlements and claims filing recovery opportunities to date. The projected recovery rate is greater than 90% of the losses resulting from the price manipulation.

As the pioneer in Antitrust Class Action Recovery, we leveraged our proprietary software systems to query data, determine eligibility and process more than 40,000 claims for nearly 250 clients all before the Forex filling deadline. The pace of antitrust settlements is accelerating and every stage of the claims recovery process is critical.

Here are five ways our clients benefited from partnering with FRT for Forex assistance that may be relevant for future Antitrust cases:

FOREX ANTITRUST CASE: CLIENT SUCCESS STORIES

1. Investors found that their current custodian was not handling Forex (or any Antitrust cases) for them:  One of the largest pension funds was confident that their custodian would file for any of their antitrust case, including the $2.3B Forex settlement. FRT repeatedly explained over several months that these cases are out-of-scope for custodians because of the complexity of the data, types of instruments involved, and lengthy class periods.

  • Days before the deadline, the firm reached out to FRT to assist with the claims filing process after receiving confirmation from their custodian that they would not be filing Forex on their behalf. FRT was able to work with the firm and Claims Administrator to execute a timely filing.

2. Claims notices went missing after moving offices: An $800B hedge fund became an FRT client two days before the Forex filing deadline after realizing that they had not received all of their eligible claim notices. Claims notices are physically mailed, and since the Client had moved offices within the year, their claims notices were lost in the moved.

  • FRT worked with the claims administrator to locate all potentially eligible accounts, as well as each account’s unique log-in credentials to assist the client in the constructed claims filing process and  file in advance of  the deadline.

3. Incorrect assumption of size of potential recovery: A $15B public pension fund believed the size of their settlement recovery for the Forex antitrust case was not significant enough to warrant immediate action.

  • FRT’s proprietary systems generated an in-depth analysis of their estimated damages and potential recognized loss calculations to prove that it was worthwhile to file their claims for Forex.

4. Difficulty connecting with claims administrator: A $3B mutual fund failed to receive claim notices for six of their accounts that they believed to be eligible under Option 1. After experiencing difficulty getting a response from the claims administrator, they asked FRT for their help.

  • FRT was able to speak directly with the claims administrator on the client’s behalf and successfully obtained the eligible claim notices.

5. Eligible claims found well past the filing deadline: After Class Counsel announced a 30% participation in the Forex Antitrust Case, many investors realized that they were eligible well after the deadline.

  • FRT maintained close discussions with the claim administrator and successfully issued late claim waivers for 60 entities. All waivers were accepted and received filing extensions where FRT continued to assist in the claims filing process.

While Antitrust claims filing is challenging, it can be done. Contact FRT at learnmore@frtservices.com to leverage our experience and technology to help you through the process.

Learn More

If you want to learn more about FRT Antitrust, filing a late Forex claim or submitting your full data to maximize your recoveries, please reach out to your account manager or email us at learnmore@frtservices.com.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

Lessons Learned from the $500+ Million ISDAfix Antitrust Case

On the heels of the Forex Antitrust Case (read our blog: Forex Antitrust Case’s Projected Recovery Rate is Estimated to be 94%-123%), FRT filed claims for more than 25,000 client accounts in the ISDAfix Antitrust Case ahead of the July 16, 2018 deadline. Here are some lessons learned from that matter:

  • If you traded any USD denominated interest rate derivatives between January 2006 and January 2014, you were eligible: While the class description in the claims form was lengthy and detailed, reduced to its essence, any investor that traded any interest rate Treasuries and/or securities between the class period end dates was eligible.
  • You did not have to be a member of ISDA to file in this case: Many clients mistakenly thought they needed to be members of ISDA to be eligible. You do not.
  • You may still be able to file in ISDAfix (and Forex): While there are no guarantees, it appears the administrators may still be accepting late claims. If you haven’t yet filed for ISDAfix or Forex, contact FRT to see how we can help.
  • As in Forex, we expect the ISDAfix participation rate to be low: Class Counsel for the Forex case has estimated a ~35% participation rate by class members, which could yield 100% recovery rates. Given the high-profile nature of the Forex litigation and the significant size of that settlement, filing rates were expected to be higher. For less high profile matters like ISDAfix and Euribor, we expect similarly low participation rates and higher than expected recovery rates. If you haven’t yet filed, you should.

With another $850 million to be distributed in the coming months from other settled antitrust class actions and 50+ cases in litigation, fiduciaries should be implementing systems for filing claims in these matters. While claim filing in this area can be challenging, FRT has developed efficient processes to maximize recoveries while minimizing client efforts.

Contact FRT at learnmore@frtservices.com to leverage our experience and technology to help you through the process.

Learn More

For more details including case background, timing and how to file for this case or FRT Antitrust service, please contact your FRT representative or email us at learnmore@frtservices.com.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

Case Spotlight: BARX Last Look antitrust class action similar to Forex case

CASE BACKGROUND

The antitrust litigation referred to as “BARX” alleges that Barclays participated in anticompetitive behavior to set the interest rate for FX instruments. This case shares many similarities to the Forex antitrust class action, especially since they involve manipulation of the FX market. FX Instruments are described as FX transactions in any deliverable or non-deliverable currency, including but not limited to FX spot, outright forwards, futures, non-deliverable forwards, FX swaps, options, and strategies, and any other instrument the trading of which is related in any way to FX rates.

The $50 million BARX settlement concerns the manipulation of certain FX transactions. It applies to investors who submitted a trade or trade instruction for an FX instrument to Barclays over the BARX platform to which Barclays applied Last Look practices. Such practices involved putting holds on foreign exchange orders that allowed the bank to determine if the price a customer sought to pay was outside a certain range. If that price was deemed unprofitable for Barclays, the bank allegedly entered a worse price or canceled trades with little or no explanation.

The plaintiff alleges that Barclays acts as both a buyer and seller of currencies through its own proprietary electronic trading platform called BARX and through multi-party electronic communications networks (ECNs). Barclays allegedly promoted the prices it streams on these platforms as “executable.”  Therefore, the trades or trade instructions investors submitted to Barclays constituted offers to transact at those prices and, at the same time, as acceptances of Barclays’ outstanding unilateral offers to trade.  The alleged manipulation occurred when Barclays delayed the execution of such trades and determined during the delay period that the trade would be unfavorable to its own position, causing Barclays in turn to renege on the agreed price.

BARX BACKGROUND

Barclays is one of the largest currency dealers in the FX market. Barclays’ platform BARX is a multi-asset trading system that processes a very high volume of transactions. It was originally designed for FX trading, but is also used to trade in commodities, derivatives and several other types of asset.

DETERMINING ELIGIBILITY

Potential claimants must be either domiciled in the U.S. or had such trade or trade instruction routed over a Barclays server in the U.S. The settlement applies to “all persons who, between June 1, 2008 and April 21, 2016, submitted a trade or trade instruction for an FX Instrument (defined above) to Barclays over BARX (whether submitted on BARX or via an ECN or any other connection to BARX) to which Barclays applied Last Look, or as to which Barclays engaged in any other conduct that is the subject of a Released Claim and who were either (i) domiciled in the United States, or (ii) (a) domiciled outside the United States and (b) had such trade or trade instruction routed over a Barclays server in the United States.”

RELATED MATERIALS     

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.