A Research Capital trader has been disciplined on one charge by the TSE, but had a more serious allegation dismissed.

Market Regulation Services Inc. reports that the contested hearing of Research trader Laudalino Da Costa before a hearing panel of the TSE found that Da Costa contravened a by-law which requires that orders be time-stamped before they are entered on the exchange. He was fined $14,000 for the offense.

However, Da Costa was also alleged to have contravened a by-law relating to manipulative or deceptive trading. The panel dismissed this charge.

The TSE alleged that between Nov. 23, 1998 and Mar 4, 1999, Da Costa executed 53 trades in 12 different listed securities for the account of one customer. None of the trade tickets for the 53 trades were time-stamped before the time of order entry. All but one of the 53 trade tickets were time-stamped after the close of trading.

It was also alleged that Da Costa executed these trades when there was reason to believe that the intended purpose of the trades was to establish an artificial price or high closing price. The panel ruled that there was not clear and convincing proof on cogent evidence sufficient for a conviction on this charge.