OpenMarkets Australia pays infringement penalty

Online stockbroker OpenMarkets Australia breached market integrity rules in relation to both the ASX Market and Chi-X Australia Market throughout 2015 and 2016 and will pay a $200,000 infringement penalty, according to the Australian Securities and Investments Commission (ASIC).

ASIC said the breaches related to filters on the use of automated order processing (AOP) systems had rendered OpenMarkets’ actions as non-compliant with its Australian financial services licence (AFSL).

The Markets Disciplinary Panel (MDP) found that OpenMarkets did not have appropriate filters for:

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

The penalty to OpenMarkets is $360,000 cheaper than it would have been prior to the firm’s agreement to the impositions of conditions on their AFSL last December. 




Related Content

Are super funds selling their members short on tax?

Australian superannuation funds could be selling their members short by up to a combined $6 billion a year because they are not managing their tax pos...more

Financial services ranked amongst least trustworthy industries

Consumers rate transparency and ethical behaviour as vital to building industry trust, and are calling out financial services as one of the least trus...more

Aussie IPOs lower in H2

Despite geopolitical impacts and volatility, the market saw strong capital raisings driven by M&A activity and equity raised in share placements t...more

Author

Comments

Add new comment