Market Regulation Services Inc. reports that a hearing panel has confirmed its jurisdiction over a trader it accuses of frontrunning.

RS reports that a hearing panel dismissed an application from a trader with Salman Partners Inc., Jason Fediuk, to stay proceedings against him. In his application, the trader challenged RS’s jurisdiction to bring a case against him on the basis that he never consented to RS’s jurisdiction, that its authority wasn’t properly delegated to it, or that if it was, it can’t in turn be sub-delegated to a hearing panel.

The panel found against each of those arguments. RS reports that the panel accepted its argument that the TSX derives its jurisdiction from the TSE Act, which covers both participating members and their employees. The panel also accepted that the Act expressly allowed the TSX to delegate its member discipline authority to RS.

Finally, it found that conducting disciplinary proceedings through the panel doesn’t constitute sub-delegation, and that it could not properly perform all its disciplinary functions through the board.

The market regulator alleges that Fediuk committed a frontrunning violation back in 2002. That case has yet to be heard, and will now go ahead on August 29 in Vancouver. It plans to hear two days of evidence before adjourning until September 12 to hear final arguments.