In the wake of an unusual trading session last month, the Autorité des marchés financiers (AMF) has initiated an investigation into trading of Orbite Aluminae inc. (TSX:ORT) shares, it said Wednesday.
The Investment Industry Regulatory Organization of Canada (IIROC) announced last month that it had launched an investigation after a trading session on Feb. 14 that saw the stock’s price to plunge and the regulator to order the trades revised. On that day, the company’s stock price fell 55% in less than a second, and there was no material news to account for the price movement.
IIROC investigating Orbite trading
The AMF said Wednesday that since that episode it “has become aware of a series of allegations from investors concerning recent and past fluctuations in the price of Orbite Aluminae inc. shares”. So, it is now conducting an investigation to determine whether these allegations are founded.
It notes that the analysis of trading that took place on Feb. 14, “shows that investors had placed sell stop orders, in some cases several days before February 14, on a large number of shares. The automatic triggering and subsequent execution of these stop orders placed significant downward pressure on the stock…”
The AMF adds that it will not comment on the case to ensure the integrity of its investigation.