Disciplinary Proceedings: Rule 4.1(1)(c) was considered In the Matter of Garett Steven Prins (“Prins”) (April 1, 2003) OOS 2003-001. See disciplinary proceedings under 2.1.
Disciplinary Proceedings: In the Matter of Frank Patrick Greco (“Greco”) (May 28, 2003) Decision 2003-004
Facts – Between November 22, 2001 and April 1, 2002, Greco, a Registered Trader employed at Griffiths McBurney & Partners, traded on information respecting pending undisclosed client orders obtained from a trader at another Participant resulting in frontrunning and conduct inconsistent with just and equitable principles of trade by Greco. Also, during this period Greco failed to properly designate short sales and executed prohibited trades in a security at a time when his employer was involved in a distribution of the security.
Held – Taking advantage of information respecting a client order that has not yet been entered in a marketplace to trade ahead of the client order harms the integrity of the marketplace. Greco acted contrary to just and equitable principles of trade and violated the frontrunning provisions of UMIR and the Toronto Stock Exchange rules.
Requirements Considered – TSX Rules 4-204(1), 4-301(1) and (8) and 7-106(1)(b); Comparable UMIR Provision Rules 4.1(1)(a) and 2.1(1)
Sanction - $65,000 fine and costs of $17,000; disgorgement of $2,105 of benefits; suspension from access to the Toronto Stock Exchange for three months
Disciplinary Proceedings: In the Matter of Donald Greco (“Greco”) (July 15, 2003) Decision 2003-005
Facts – On November 22, 2001, Greco, a registered trader, with knowledge of an undisclosed pending client order in a particular security used that information to buy shares in the security.
Held – With knowledge of an undisclosed client order which could reasonably be expected to affect the market price of such security, Greco traded in this security, and as such, contravened TSX Rule 4-204(1).
Requirements Considered – TSX Rule 4-204(1). Comparable UMIR Provision – Rule 4.1
Sanction - $15,000 fine and costs of $10,000; disgorgement of $250; one month suspension
Disciplinary Proceedings: Rule 4.1 was considered In the Matter of Kai Tolpinrud (“Tolpinrud”) (January 16, 2006) OOS 2004-001. See Disciplinary Proceedings under Rule 2.1.
Disciplinary Proceedings: In the Matter of Jason Fediuk (“Fediuk”) (February 15, 2005) Decision 2005-002
Facts – Fediuk, a trader at Salman Partners Inc. (“Salman”), had an outstanding short position in TVX, a TSX listed issuer, in his personal account. On April 26, 2002, a Salman client placed a significant buy order for shares of TVX with a trader that worked in close physical proximity to Fediuk. Within minutes of the Salman client order being received by that trader, Fediuk placed a jitney order to buy shares of TVX to cover his outstanding short position.
Held – While the Panel agreed that the timing of the trades and use of an undisclosed jitney order to avert losses in his personal account was suspicious, it held that RS did not prove that Fediuk knew of the client order when he entering trades for his personal account.
Requirements Considered – Rule 4.1(1)(a)
Disposition – charges against Fediuk dismissed