OpenMarkets pays $200,000 fine

OpenMarkets pays $200,000 fine

Online stockbroker OpenMarkets Australia has paid a penalty of $200,000 for market integrity breaches related to its trading system.


Open Markets has paid a penalty of $200,000 to comply with an infringement notice given to it by ASIC's Markets Disciplinary Panel (MDP).

According to a statement by ASIC, the MDP had reason to believe that OpenMarkets breached the market integrity rules in relation to the ASX and Chi-X.

The rules "require market participants to have appropriate filters in place for use of their automated order processing system (AOP)", said ASIC in a statement.

The MDP found that OpenMarkets did not have appropriate filters to:

  • prevent trades that involved no change of beneficial ownership;
  • reject the placement of sell orders which exceeded maximum order value limits;
  • reject the placement of sell orders that were prohibited short sales; and
  • identify orders that were priced far away from the prevailing price in other markets.

OpenMarkets avoided a larger penalty of $560,000 by agreeing to the imposition of conditions on their licence in December 2016.

"These conditions, which required OpenMarkets to engage an independent expert to review their systems, were imposed to address ASIC’s concerns with the financial services business carried on by OpenMarkets, including the use of its AOP system," said ASIC.

 

OpenMarkets pays $200,000 fine
investordaily image
ID logo
promoted stories

Appointments

investordaily image

Fortnum hires former Centric Wealth CEO

Staff Reporter

Deborah Ralston

SMSF Association names new chair

Katarina Taurian

Curtis Cifuentes

Avenir Capital hires investment director

Staff Reporter

Analysis

investordaily image

A correction, not a turning point

James Swanson

Martin Dropkin

Why bond covenants matter

Martin Dropkin

Maurizio Canton

Striking a balance between security and innovation

Maurizio Canton