Erez Law Investigating Claims Involving UBS’s V10 Enhanced FX Carry Strategy

Erez Law is investigating claims regarding UBS’s V10 Enhanced FX Carry Strategy (“V10”), “in which the switch from long to short and back is systematically driven by a trading algorithm,” according to UBS’ website. When the European debt crisis hit in mid-2010, however, the index to which the notes were tied lost 26 percent in two years, according to Bloomberg. The currency product generated sales commissions for the bank, and provided the opportunity to profit from the buying and selling of the underlying currencies, according to Bloomberg. In addition, V10 was especially profitable for UBS, according Bloomberg.

Bloomberg also reports that investigators at the Department of Justice are examining whether UBS traders shortchanged investors by overcharging investors when they carried out the currency trades needed to execute the strategy. The investigation demonstrates an expansion of an investigation by regulators into the $5.3 trillion-a-day foreign-exchange market, according to Bloomberg. Bloomberg further reports that the Justice Department is reviewing instant messages, interviewing traders, and examining documents provided customers to determine whether the bank misrepresented the profit it would take on the trades. Peter Carr, a Justice Department spokesman, declined to comment to Bloomberg.

If you were a client of UBS or invested in the V10 Enhanced FX Carry Strategy and have suffered investment losses, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.