The Ontario Securities Commission (OSC) has reached a settlement agreement in an enforcement case against shuttered day trading firm Swift Trade Inc. and its co-founder and president, Peter Beck.
Under the agreement announced Thursday, the Swift Trade respondents — including Beck, Swift Trade, and several other companies, Beremis Corp., Opal Stone Financial Services, Barka Co. Ltd., Trieme Corp. and Calm Oceans LP — must pay a penalty of $100,000 and must pay $300,000 towards the costs of the investigation and hearing.
Additionally, the Swift Trade group faces a range of market bans, including six year trading and registration bans for Swift Trade, Biremis, and Opal Stone; four year bans for Barka and Trieme; a four-year registration ban for Calm Oceans; and a two-year registration and director and officer ban for Beck.
The sanctions stem from allegations that Swift Trade, under Beck’s control, had various supervisory deficiencies that included financial management deficiencies, inadequate trade reviews, and failing to produce complete and accurate records during a compliance review. Additionally, the various firms, which were part of a global day trading operation, also violated dealer registration requirements. Swift Trade was dissolved in December 2010.
Last year, the UK’s Financial Services Authority announced that it made a preliminary enforcement decision against Swift Trade an it decided to fine the firm £8 million for engaging in a form of manipulative trading known as ‘layering’. The firm is appealing that decision, and has referred the case to the Upper Tribunal which may uphold, vary or cancel the FSA’s decision.