Regulators in Alberta have sanctioned a former rep for “high closing” trades that he placed on behalf of a client.
The Alberta Securities Commission (ASC) has announced a settlement with Henry Ian Thor, a former rep at Raymond James Ltd. in Edmonton, who admitted to violating securities rules by repeatedly making trades in a venture stock, BCM Resources Corp., that resulted in high closes.
“The practice of repeatedly entering high bids late in the trading day, leading to high close trades or uptick bid prices, is a manipulative strategy,” the settlement noted.
“The placing and the timing of such bids are driven not by bona fide trading motives, but a desire to influence other traders by creating the impression a stock did well in trading during the day,” it adds.
Thor agreed to a four-year trading ban, a $30,000 fine and to pay $10,000 in costs to settle the case.
According to the settlement with the ASC, Thor “repeatedly entered bids on behalf of a client for shares late in the trading day that were higher than the last trade of the day, resulting in at least 25 high close transactions.”
“Thor admitted that he ought to have known that the high close purchases may result in, or contribute to, a false or misleading appearance of trading activity and an artificial price for a security,” the regulator said.
The settlement noted that Thor had not been previously sanctioned, and cooperated with the ASC’s investigation.