Refinitiv Transaction Services Pte. Ltd. is being sanctioned by the Autorité des marchés financiers (AMF) for allowing institutional investors to trade derivatives through its unregistered trading platform.
The AMF settled with the Singapore-based firm, which admitted to breaching Quebec’s securities law by providing access to its trading platform for over 18 months without registering as an exchange, or securing an exemption.
To settle the allegations, Refinitiv agreed to a $3.5-million penalty.
According to the regulator, the penalty “reflects [the firm’s] cooperation and prompt efforts in identifying, addressing, and remediating the compliance and supervisory shortcomings that lead to this breach.”
Refinitiv has also applied for an exemption from the requirement to register as an exchange, it noted.
In 2021, the firm was granted an exemption from exchange registration by the Ontario Securities Commission allowing it to provide access to its platform for trading a variety of over-the-counter foreign exchange instruments, including forwards, swaps and options, and precious metals derivatives.