JitneyTrade Inc. has admitted to supervisory weaknesses that failed to guard against possible manipulative trading activity in a settlement with the regulatory division of the Bourse de Montréal Inc.
The exchange’s disciplinary committee approved a settlement that imposed a $90,000 fine and $13,000 in costs against JitneyTrade for failing to adopt controls to manage the risks associated with allowing direct electronic access to the exchange.
The compliance weaknesses were uncovered in a trade desk review in September 2017.
According to the settlement, the firm admitted that its post-trade monitoring controls and review procedures weren’t adequately able to detect certain types of manipulative trading by direct access clients, such as “spoofing” and “marking the open.”
The firm cooperated with the exchange’s investigation, and the misconduct was not intentional, the settlement noted.