On April 3, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and BMO Nesbitt Burns Inc.
BMO Nesbitt Burns admitted it contravened Universal Market Integrity Rule (UMIR) 7.1 and Policy 7.1 by failing to adopt adequate policies, procedures and a supervision system sufficient enough to manage the risks associated with trading activities. As such, it failed to prevent the submission of erroneous orders, which resulted in the entry of an erroneous order by one of its traders to the TSX Market-on-Close Facility on October 13, 2010.
Pursuant to the settlement agreement, BMO Nesbitt Burns agreed to pay a $50,000 fine to IIROC. BMO Nesbitt Burns also agreed to pay costs in the amount of $5,000.
IIROC formally initiated the investigation into BMO Nesbitt Burns’ conduct in April 2011. BMO Nesbitt Burns is currently an IIROC-regulated firm.
Read the settlement agreement.