OpenMarkets pays $200,000 fine
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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.

 

OpenMarkets pays $200,000 fine
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