The Investment Industry Regulatory Organization of Canada has fined BMO Nesbitt Burns Inc. $50,000 for trading rule violations.
On April 3, an IIROC hearing panel of accepted a settlement agreement between IIROC staff and BMO Nesbitt Burns Inc.
BMO Nesbitt Burns admitted it contravened trading rules by failing to adopt adequate policies, procedures and a supervision system sufficient to manage the risks associated with its trading activities 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 Oct. 13, 2010.
The investment dealer agreed to pay a $50,000 fine to IIROC. It also agreed to pay costs in the amount of $5,000.
IIROC formally initiated the investigation into BMO Nesbitt Burns’ conduct in April 2011.