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Investigation into claims by investors in CMC Markets’ Crude Oil West Texas Intermediate (WTI) Cash product
Omni Bridgeway, with Mayweathers Lawyers, is investigating potential claims by investors in CMC Markets’ Crude Oil West Texas Intermediate (WTI) Cash product who may have suffered loss and damage relating to their investment.
WTI Cash product investors are invited to register their details below.
Background
CMC Markets offers contracts for difference (CFDs) which allow investors to speculate on the price of oil. In late April 2020, the crude oil markets, especially West Texas crude oil markets, suffered from severe volatility as a result of the COVID-19 crisis. Oil prices dropped severely, and there were widespread fears that crude oil prices would drop below $0.
On 21 April 2020, CMC Markets changed the underlying reference instrument (URI) for the West Texas crude oil CFD from the May 2020 West Texas crude oil futures contract to a futures contract which would expire later, in December 2020. At the same time, CMC Markets made two further changes to the terms of the CFD:
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They altered their system to automatically close out positions in the CFD if the CFD’s price dropped below $0. These positions would be closed out at a price of $0, even if the actual price of the CFD had dropped even further, into negative values; and
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They changed the CFD’s status to ‘reduce-only’. This meant that investors could not open new positions in the CFD; they could only close their existing positions.
Investors say that they were misled and it was unreasonable and unfair for CMC Markets to change the URI for the West Texas crude oil CFD in response to the 21 April 2020 oil price volatility and that as a result, they suffered loss and damage.
The WTI Cash product was offered by CMC Markets in many countries, including but not limited to Australia, New Zealand, the UK, the US, EU countries and Singapore.
Potential Claim
Further details about the potential claim are available to CMC Markets WTI Cash product investors who register their interest with Omni Bridgeway below.
Please note that registering an expression of interest with Omni Bridgeway does not represent an offer to participate in a Litigation Funding Scheme and is not a commitment by any person to fund a class action or potential class action in respect of the matters set out on this website. Omni Bridgeway also notes the following:
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This website is established for the sole purposes of gauging the levels of interest in participating in funded litigation, it is not a commitment by any party to participate in funded litigation in the future, including by you.
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Any offer to participate in a Litigation Funding Scheme shall only be done by way of a Product Disclosure Statement issued by Omni Bridgeway Investment Management Limited (ACN 642 086 593, AFSL No. 524023) once the relevant Litigation Funding Scheme has been registered with the Australian Securities & Investments Commission.
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By registering an interest in participating in funded litigation, you consent to Omni Bridgeway Investment Management Limited or Omni Bridgeway Limited (Authorised Representative of Omni Bridgeway Investment Management Limited) (ABN 45 067 298 088, Authorised Representative No 1283703) contacting you and providing further information in relation to litigation funding.
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To the extent that a Product Disclosure Statement (PDS) is made available, you should consider with or without the assistance of your professional advisers whether or not to participate in the litigation funding to which the PDS relates.
If you have any questions you can contact the Omni Bridgeway Client Liaison Team in our Perth office by email on cmcmarkets@omnibridgeway.com or by calling 1800 016 464 (free call in Australia) or 61 8 9225 2322 (if overseas).
