UBS settles with MX

Derivatives market regulators settled with UBS Securities LLC over violations involving the firm’s oversight of access to the electronic trading system of the Bourse de Montréal Inc.

Following a hearing on March 29, the disciplinary committee of the Bourse de Montréal approved a proposed settlement between UBS and the regulatory division of the exchange that requires the firm to pay a $90,000 fine and $5,685 in costs.

The settlement followed the firm’s admission that it violated the exchange’s rules by granting access to its electronic trading system to eight employees who weren’t approved for access.

According to the settlement, five of the eight employees never entered any trades, while the other three entered 529 orders and traded over 6,500 derivatives contracts without being approved.

The settlement also addressed the fact that the firm failed to establish a compliance system to ensure that only approved personnel received access to the exchange’s electronic trading system.

The firm has since enhanced its supervisory systems to prevent future violations, it also noted.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.