A Market Regulation Services Inc. (RS) hearing panel has suspended and fined a broker with CNQ dealer W.D. Latimer for contravening the Universal Market Integrity Rules.

In the settlement agreement approved Nov. 14, 2006, W. Scott Wardle admitted that between October 2004 and March 2005, he engaged in trading on the CNQ marketplace that financially benefited himself, usually in small increments, without regard for the best interests of his clients, and in some cases to the detriment of his clients.

The panel found that Wardle contravened rules involving frontrunning, just and equitable principles of trade, client priority, order marking, exposure of client orders and audit trail.

Wardle was fined $40,000 plus $35,000 in costs and suspended from access to all marketplaces regulated by RS for one month.

“This case illustrates that traders must take their client responsibilities seriously and never use their knowledge of a client order to their own advantage. This activity was detected thanks to the diligent work by RS staff,” said Maureen Jensen, VP, Market Regulation, Eastern Region.