Canada: Québec’s AMF fines Refinitiv for operating unregistered derivatives exchange
As a measure to align with Québec securities legislation, Refinitiv has submitted an application to the AMF seeking exemptive relief from being recognized as an exchange. This step is an effort to rectify its regulatory compliance status.
The Autorité des marchés financiers (AMF), Québec’s financial sector regulatory and oversight body, has reached a settlement with Refinitiv Transaction Services Pte. Ltd.
Under this agreement, Refinitiv will pay an administrative monetary penalty of $3,500,000. This penalty is imposed for Refinitiv’s operation as an exchange in Québec without the necessary authorization.
Refinitiv seeks exemptive relief from being recognized as an exchange in Québec
For over 18 months, Refinitiv had provided institutional participants in Québec access to its trading platform for derivatives trading. This was done without being recognized as an exchange or obtaining an exemption from such recognition by the AMF. This action constituted a breach of section 12 of the Derivatives Act.
In the course of reaching this agreement, Refinitiv acknowledged its violation of Québec securities legislation and confirmed all the pertinent facts related to this breach. This admission is a significant aspect of the settlement.
Additionally, as a measure to align with Québec securities legislation, Refinitiv has submitted an application to the AMF seeking exemptive relief from being recognized as an exchange. This step is an effort to rectify its regulatory compliance status.
The size of the penalty levied on Refinitiv takes into account the company’s cooperation with the AMF during the investigation. It also reflects Refinitiv’s proactive approach in identifying and resolving the compliance and supervisory issues that led to this regulatory breach. This aspect of the agreement indicates a collaborative approach to resolving the issue.
