The regulatory division of the Bourse de Montréal Inc. (MX) is alleging that BMO Nesbitt Burns Inc. violated the exchange’s rules, including allegations of front running.
The MX has scheduled a hearing before its disciplinary committee on June 2 to consider a complaint filed by its regulatory division alleging that BMO Nesbitt Burns and one of its employees violated the exchange’s rules back in 2019.
None of the allegations have been proven.
Among other things, the complaint alleges that the firm violated then rules against front running on two dates in 2019, March 19 and May 31, “as it took advantage of a customer’s order by trading ahead of it.”
Additionally, the complaint alleges that, on those same days, the firm violated its best execution obligations, “as it did not diligently pursue the execution of a client order on the most advantageous execution terms”; and, that it violated the order priority requirements.
It also alleged supervisory failures, between March 19 and October 10, 2019, at the firm for not having systems in place to detect and prevent front running.