OSC Fines Two Bloomberg Units with $3M for Authorization Lapses

​The Ontario Securities Commission (OSC) announced that it has fined two subsidiaries of Bloomberg L.P. —Bloomberg Trading Facility Limited (BTFL) and Bloomberg Trading Facility B.V. (BV), with more than $3 million for authorization lapses.

Specifically, BTFL and BV operated marketplaces without authorization in Ontario and filed applications for exemptive relief with the Commission containing incomplete and inaccurate information.

In addition, After BTFL obtained an exemption order, it failed to prevent fixed income trading on its multilateral trading facility, contrary to the terms and conditions of the order, and failed to disclose this activity in quarterly reports filed with OSC Staff.

In order to settle with the OSC, the two firms have paid an administrative penalty of CAD $2,506,011.80 and disgorged $663,305.20.

“These are two sophisticated corporations, conducting business on a global scale, that failed to comply with Ontario securities laws,” said Jeff Kehoe, Director of the Enforcement Branch at the OSC. “These entities must be vigilant in monitoring compliance of their activities with securities laws and have an obligation to report accurately to regulators. This expectation applies to every entity carrying on business in Ontario.”

To provide transparency to market participants, OSC Staff have included detailed descriptions of how these sanctions were calculated in the settlement agreement. The Respondents will also conduct an internal review and submit a report to OSC Staff on their practices and procedures to ensure compliance with Ontario securities law.