Market Regulation Services Inc. is now providing a new early warning system for compliance officers of potential violations by their traders, allowing these officers to ensure timely and appropriate action is taken to protect investors.

The alerts of suspected violations of the Universal Market Integrity Rules are expected to assist compliance staff of brokers. RS staff will initiate a Potential Violation Alert when RS market surveillance becomes aware of a possible trading violation. Each suspected violation will be reviewed and, following discussions between market surveillance and the person responsible for the entry of the suspect order(s), a notice will be delivered via email to the designated compliance staff within the relevant firm.

Alerts will be provided for information purposes; they are not indications that RS has determined that a particular contravention has occurred. An alert may not be sent in every case, and the absence of an alert will not constrain any action that RS may determine to take with respect to a suspected violation.

RS will provide alerts of suspected violations to brokerage firms that subscribe to them. RS will begin issuing alerts via regular, non-encrypted email. RS is, however, currently researching various secure communications systems that may be used in the future for the transmission of such information.

To subscribe to the alerts, contact Mark Faulkner, manager, investigations and analysis 416-646-7213 or e-mail mark.Faulkner@registrationservices.com