Euroption Strategic Fund Ltd v Skandinaviska Enskilda Banken AB [2012] EWHC 584 (Comm)

British and Irish Legal Information Institute

15 March 2012

The Commercial Court has provided guidance on the scope of the duties owed by a clearing broker to an investment fund, in circumstances where the broker has exercised its right to conduct a forced close out.

The Court concluded that the clearing broker is only obliged to act rationally and in good faith. Furthermore, the clearing broker has a very broad discretion to take appropriate action in order to effect the close out.