The Ontario Securities Commission (OSC) is holding a hearing on March 28 to consider a possible settlement in a case of alleged wash trading.
The OSC announced that it is planning a hearing to consider settlement between OSC staff and Stephen Campbell, over allegations of improper trading activity. The allegations have not been proven.
The commission alleges, that, between January 1, 2010 and December 31, 2011, Campbell executed trades in the class A common shares and convertible debentures of Discovery Air Inc. where: he had knowledge, or control over, another order on the opposite side of the market with substantially the same terms and conditions and used that knowledge to match orders; and, at other times, knew that his order entry would result in trades involving no change in beneficial or economic ownership (aka wash trades).
The OSC also says that Campbell sometimes executed trades at better prices in the marketplace in order to enable match trades and/or wash trades. The commission alleges that these activities created a misleading appearance of trading activity.