Disciplinary Proceedings: In the Matter of Robert Bastianon (“Bastianon”) (October 30, 2002) OOS 2002-004
Facts – On February 19, 2002, Bastianon, a trader, executed an order to sell shares of a listed security from his firm’s inventory account in a cross trade with a client. The trade was entered at price of $28.00 at a time when the quotation for the listed security was $27.80 bid and $28.00 ask.
Disposition – Bastianon was required to provide the client with price improvement over the ask price to ensure that the client received a price that was better than the quoted market. Bastianon failed to provide the requisite price improvement to the client.
Requirements Considered – TSX Rule 4-502(2). Comparable UMIR Provision – Rule 8.1
Sanction - $10,000 fine and costs of $2,500
Disciplinary Proceedings: In the Matter of Russell Marceniuk (“Marceniuk”) (December 12, 2002) OOS 2002-008
Facts – On May 7, 2001, Marceniuk, a liability trader and registered representative, executed an order to sell shares of a company from his liability account (principal account) in a cross with a client. The trade was entered at $68.68, at a time when the quotation for the stock was $68.50 bid and $68.68 ask.
Disposition – When a trader engages in a customer-principal trade, the trader is required to ensure that the client receives a price that is better than the quoted market. Marceniuk was required to provide the client with price improvement over the ask price.
Requirements Considered – TSX Rule 4-502. Comparable UMIR Provision – Rule 8.1
Sanction - $10,000 fine and costs of $1,500
Disciplinary Proceedings: Rule 8.1 was considered In the Matter of Golden Capital Securities Ltd. (“Golden”), Jack Finkelstein (“Finkelstein”) and Jeff Rutledge (“Rutledge”) (November 23, 2007) DN 2007-004. See Disciplinary Proceeding under Rule 6.2.
Disciplinary Proceedings: In the Matter of Steve Horrocks (“Horrocks”) (August 5, 2009) DN 09-0229
Facts – On each of July 12, September 5, and November 12, 2006, Horrocks, an institutional trader at Canaccord Capital Corporation (“Canaccord”), executed intentional cross trades between a Canaccord proprietary account and a client account for 50 standard trading units or less (with a value of less than $100,000) in listed securities without providing price improvement to the client order. In all cases the client order traded with orders for Canaccord’s proprietary account at either the “ask” price in the case of a buy, or the “bid” price in the case of a sale.
Disposition – When a trader engages in a client-principal trade for 50 standard trading units or less, the trader is required to ensure that the client receives a price that is better than the quoted market. By failing to provide price improvement to the client orders, Horrocks violated Rule 8.1.
Requirements Considered – Rules 8.1 and 10.3(4)
Sanctions - $10,000 fine and costs of $2,000.
Disciplinary Proceedings: In the Matter of Melaney Phillips (“Phillips”) (November 30, 2011) DN 11-0343
Facts – On or about July 13, 2007, Phillips recommended and purchased shares in the account of her client which were acquired directly from part of her own personal sell order without advising the client of her interest in the transaction or taking reasonable steps to ensure the client obtained the shares for the best available price. The client received a worse price than that which was in the market in that there was no activity in the market for the security at any price. The remainder of Phillips’ sell order was filled in subsequent days at lower prices.
Disposition – Phillips sold shares from her own account to a client without ensuring the client obtained the best available price, contrary to UMIR 8.1 which provides that a representative may only sell to a client for the representative’s own account if they sell to a client at a better price than that which is in the market.
Requirements Considered – Rule 8.1.
Sanction – The Hearing Panel imposed penalties on Phillips related to the breach of UMIR 8.1 and other breaches of the Dealer Member Rules with a fine of $290,000; disgorgement of profits of $10,350; a 3 year suspension from registration; payment of fine, disgorgement and costs prior to re-registration; successful completion of appropriate courses prior to re-registration; strict supervision for the first 2 years in the event of re-registration and payment of costs in the amount of $15,000.