Glasgow-based Echelon, a contracts-for-difference provider, collapsed in October 2008. IG, which was among those it used to hedge its exposures, closed out Echelon’s positions in the contracts-for-difference market when it failed to meet margin calls, and suffered a minor bad debt when it filed for bankruptcy.

The plaintiffs, two corporate clients and a single investor, are seeking to recover damages of about €15 million from IG, as well as €10 million in lost profits after serving a claim to the High Court in London, reports said.

The case could focus attention on the role of spread-betting and CFD firms, which have, along with many other financial services, come under tighter regulatory control due to laws such as the European Union’s MiFID directive, which requires firms to judge the appropriateness of any potential client. IG is one of the biggest such firms in the UK.

IG has said the claim from the Echelon clients to be “speculative and without foundation” and said it will defend itself “vigorously”.

In 2009, Smith & Williamson, Echelon’s liquidators, said up to 900 customers could be in line for compensation after the Financial Services Compensation Scheme declared the wealth manager in default.