The Investment Industry Regulatory Organization of Canada (IIROC) has fined Toronto-based Independent Trading Group (ITG) Inc. $170,000 for supervisory failings.
On April 27, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff an ITG, which describes itself as Canada’s only brokerage firm dedicated specifically to professional trading.
ITG admitted that it failed to adopt, document and maintain a system of risk management and supervisory controls, policies and procedures that was adequate to ensure the management of the financial risks associated with electronic access to marketplaces.
In addition to the fine, ITG agreed to pay $5,000 in costs.
IIROC formally initiated Its investigation into ITG in May 2014, after the firm’s failure to employ adequate automated pre-trade controls to limit its financial exposure allowed for the entry of an erroneous order on Jan. 21, 2014 that resulted in an intraday capital deficiency of approximately $8 million.
ITG continues to be an IIROC-regulated firm.
Editor’s note: Independent Trading Group (ITG) Inc. is not in any way related to or affiliated with ITG Canada Corp.