Etrade failed to comply with the regulator’s market integrity rule regarding a product to be both fair and orderly, an ASIC-issued statement said.
ASIC’s Markets Disciplinary Panel (MDP) said Etrade’s misconduct had the “potential to damage the public confidence in the integrity of the market”.
“The misconduct was negligent on the part of Etrade as the functions of a DTR were not exercised to the requisite high standard in that the Etrade DTR did not take due care in assessing the client order, before submitting the relevant order into the ASX Trading Platform,” the statement said.
“Etrade did not self-report the breach to ASIC under section 912D of the Corporations Act as required. In the panel’s view such obligation remained regardless of whether ASIC was aware of the breach.”
However, ASIC indicated that Etrade did not derive benefit from the misconduct.
According to ASIC, the company has previously been sanctioned by the ASX Disciplinary Tribunal on eight occasions since 2004.
Etrade also had one previous contravention against it for non-compliance with market integrity rules, resulting in a pecuniary penalty of $55,000.
