Saxo Bank Wins Supreme Court Case

Saxo Bank Wins Supreme Court Case

Today there was a shocking turn of events in the Danish Supreme Court. Judges with the court system announced that they had decided in favour of the Saxo Bank. The decision relates to their supreme court case against the Swiss Franc, which until January 2015 was pegged with the Euro through a fixed exchange rate. This domestic opposition is illegal on a United Nation scale, which prompted for Saxo Bank to launch an inquiry into Swedish Banking Institutions.

Right after the inquiry began, the Swiss Central Bank unpegged its currency with the Euro. This occurred on January 15th and prompted a dramatic drop in the exchange rate for the Euro to Swiss Franc.

Before this event on January 15th, 2015, one Euro was worth 1.2 Swiss Francs. After these events, the currency exchange for the Swiss Franc dropped to 0.85. Immediately the Swiss Stock Markets took a massive plummet and had substantial losses for the first time in decades. This forced a global issue for hedge funds, retail brokers and stock markets.

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When the court case began, the Danish Supreme Court found multiple indications of illegal behaviour from the Swiss Central Bank. It was revealed that clients close to the bank had several contracts making substantial profits with the EUR/CFH Currency Pairing. Additionally, it was revealed that employees themselves were managing one to two contracts at a time. This results in considerable stop-losses with the Swiss Franc for clients with the banking institution.

The Swiss Central Bank claimed that these actions were false and that the findings were attempted efforts that had failed over time. Regardless, their attempted behaviour was illegal, and the evidence found provided to be more than viable. After these claims came to light, the exchange rate of the Franc to Euro for these clients dropped to 0.9625 in the exchange rate. That was before the significant drop to 0.85.

This resulted in a primordial shift in the Swiss Market, with countless retail clients and traders opting to join foreign markets.

It took the Denmark Supreme Court nearly five years to decide this case, with the courts ultimately deciding to rule in favour of Saxo Bank. The courts released an official statement that noted this was an extraordinary situation in the market that hadn’t been seen before. The courts needed time to delegate on their decision. Saxo Bank has now been awarded their settlement price, which wasn’t released, but would be a substantial figure.