TORONTO, Aug. 1 /CNW/ - Belzberg Technologies has recently incurred an
$800,000 one-time pre-tax loss due to an error in executing a hand-written,
manually executed order for one of its clients, in its floor brokerage
subsidiary on the floor of the CBOE. In addition to executing orders
electronically, the floor-brokerage operation provides the service of manually
executed, non-electronic trades for clients who require handling of special
This trading error will impact the results of Belzberg's third quarter
which ends September 30, 2008. Belzberg will announce its second quarter
results on Thursday evening August 7 as previously reported and will hold a
conference call the morning of August 8.
Additional risk management procedures and safe guards have been
implemented which we believe should both substantially reduce the likelihood
of similar errors occurring in the future and, if and when such an error were
to occur, reduce the likelihood that the loss involved would be of this size.
"Trading errors are a part of the brokerage business and can never be
entirely avoided," said Sidney H. Belzberg, CEO of Belzberg Technologies.
"That said, this is the first loss in the seven years of operating our
floor-brokerage that we have an error warranting public disclosure. With the
new procedures in place, the likelihood of errors resulting from
non-electronic, manually executed trades will be substantially reduced."
About Belzberg Technologies
Belzberg Technologies Inc. is a provider of technology-based brokerage
services, trading equities and options through Electronic Brokerage Systems,
Belzberg Technologies' wholly owned agency-only broker-dealer. Electronic
Brokerage Systems is a member of most North American stock exchanges, options
exchanges and clearing organizations, including the NYSE, NASDAQ, CBOE, NSCC
and OCC. Using Belzberg's suite of integrated trading tools and network
connectivity, Belzberg's customers have direct access to all North American
equities and options markets. The firm's client-base includes over 200 leading
U.S. and international brokerage houses and financial institutions. Belzberg
Technologies is listed on the Toronto Stock Exchange (Ticker-BLZ) - additional
information is available at www.belzberg.com.
Forward looking statement disclaimer
Except for historical information contained herein, the matters discussed
in this press release are based on forward-looking statements that involve
risk and uncertainty. A variety of important factors could cause results to
differ materially from such statements, including but not limited to economic,
competitive, governmental and technological factors affecting the company's
operation, markets, products, prices and other factors.
For further information:
For further information: Sid Belzberg, Chief Executive Officer, Phone:
(416) 360-1812, E-mail: firstname.lastname@example.org