IN THE MATTER OF Interactive Brokers Canada Inc. - Settlement



    MONTREAL, May 22 /CNW/ - Notice is hereby given that a hearing will be
held before a Hearing Panel of the Investment Industry Regulatory Organization
of Canada (IIROC), on Wednesday, May 27, 2009, at 5 Place Ville-Marie, Suite
1550, Montréal, Québec, at 10 a.m. or as soon thereafter as the hearing can be
held, to consider whether, pursuant to IIROC Dealer Member Rule 20.36, the
Hearing Panel should accept a Settlement Agreement entered into between IIROC
Staff and Interactive Brokers Canada Inc. (the "Respondent").
    The subject matter of the proposed Settlement Agreement concerns
allegations that the Respondent:

    
    (1) failed to record properly in its securities positions held in
        safekeeping by a Regulated Entity, thereby failing to maintain proper
        books and records, contrary to  IDA By-law 17.2 and IDA Regulation
        200 (since June 1, 2008, IIROC Dealer Member Rule 17.2 and IIROC
        Dealer Member Rule 200);

    (2) failed to ensure that a brokerage account was opened with the
        Regulated Entity for the securities held in safekeeping for it by the
        latter, and to request and obtain monthly statements of account
        showing the securities and related transactions within the brokerage
        account, and to reconcile these with its inventory, thereby failing
        to obtain sufficient proof of its control over these assets, contrary
        to IDA By-law 29.1 and, effective June 1, 2008, IIROC Dealer Member
        Rule 29.1; and

    (3) incorrectly reported, in its Monthly Financial Reports to IIROC, its
        customers' free credit balances as funds held in trust with an
        acceptable institution, whereas the funds were not deposited in an
        account opened by or for it, or over which it had control, but
        rather, were invested in securities held in trust by a related
        company, pursuant to IDA Rule 1200 and, effective June 1, 2008,
        Dealer Member Rule 1200, thus failing to report financial information
        correctly to the IDA, contrary to By-law 16.2, and subsequently to
        IIROC, effective June 1, 2008, contrary to Dealer Member Rule 16.2.
    

    IIROC formally initiated the investigation into the Respondent's conduct
on June 17, 2008. It was alleged that the violations occurred between 2002 and
March 2009, while the Respondent was a Member firm of the IDA, and
subsequently, of IIROC. Interactive Brokers Canada Inc. has been a member of
IIROC since June 1, 2008.
    The hearing is not open to the public unless and until the Settlement
Agreement has been accepted by the Hearing Panel. If the Hearing Panel accepts
the Settlement Agreement, the Hearing Panel's decision and reasons will be
made available to the public.

    IIROC is the national self-regulatory organization which oversees all
investment dealers and trading activity on debt and equity marketplaces in
Canada. Created in 2008 through the consolidation of the Investment Dealers
Association of Canada and Market Regulation Services Inc., IIROC sets high
quality regulatory and investment industry standards, protects investors and
strengthens market integrity while maintaining efficient and competitive
capital markets. IIROC carries out its regulatory responsibilities through
setting and enforcing rules regarding the proficiency, business and financial
conduct of dealer firms and their registered employees and through setting and
enforcing market integrity rules regarding trading activity on Canadian equity
marketplaces.




For further information:

For further information: Carmen Crépin, Vice President, Québec, (514)
878- 2854, ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416)
943-6996, jkehoe@iiroc.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890