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United Kingdom close outdiscretionduty of care

Euroption Strategic Fund v Skandinaviska Enskilda Banken AB

[2012] EWHC 749 (Comm)
JurisdictionUnited Kingdom
CourtHigh Court of Justice (Queen's Bench Division, Commercial Court), Gloster J
Year2012
StatusPersuasive authority

Key Principle

A clearing broker that closes out a client's portfolio following default is required only to exercise its contractual discretion rationally and in good faith, not to achieve the best result or to act as a prudent trader; it does not owe a wider tortious duty of care to time the close-out optimally for the client's benefit.

Area of Law

General

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