Recommendation against K.K. Fxpuraimubygmo

Action summary

Company

K.K. FxpuraimubygmoRomanized

Original: 株式会社ＦＸプライムbyＧＭＯ

Corporate Number: 3011001049147

Governing law

Financial Instruments and Exchange Act

金融商品取引法

Action type

Recommendation

勧告

Action date

August 4, 2020

Issuing authority

Securities and Exchange Surveillance Commission

証券取引等監視委員会

Violation

The company's trading system for over-the-counter foreign exchange margin trading has a design that cannot eliminate the occurrence of slippage, which is the price difference between the order execution price and the initial order price, during the period from order placement to execution in the case of market orders. The company was aware of this system specification through internal reviews conducted in 2014 regarding slippage, reports from the system department head, and shared understanding among directors and legal compliance officers. Additionally, information from customers about the occurrence of slippage has been received, including at least in 2018, when such information was shared among the representative director, directors, managers, and group leaders. In an investigation commissioned to an external research company, Company A, it was confirmed that slippage had occurred multiple times in the company's system. Despite knowing this, the company did not take measures to verify the potential for slippage in its system, relying instead on referencing Company A's report, which did not include findings of multiple slippages, and published advertisements claiming "No slippage (0%), according to Company A," which was factually inaccurate.

Source

The original Japanese disclosure is the authoritative record.