The Ontario Securities Commission will hold a hearing today to consider proposed settlement agreements with three U.S.-based online brokers for trading on behalf of Canadian clients without registration.

The OSC’s hearing against Datek Online Brokerage Services Inc., Ameritrade Inc. and TD Waterhouse Investor Services Inc. is being held jointly with the Manitoba Securities Commission, the Nova Scotia Securities Commission and the Commission des Valeurs Mobilieres du Quebec.

OSC enforcement staff are alleging that Datek, Ameritrade, and TD Waterhouse in the U.S. allowed Canadians to log onto their websites, open an account and trade in the U.S. market. “Since at least January 1999, Datek, Ameritrade and TD Waterhouse US have, on behalf of residents of Ontario, executed trades in securities in the organized markets in the U.S. without being registered.”

The conduct alleged above contravenes Ontario securities law and is contrary to the public interest, says the OSC.