Market Regulation Services Inc.

Market Regulation Services Inc.

August 25, 2005 16:41 ET

B.C. trader loses attempt to stay proceedings; Frontrunning case to be heard by RS Hearing Panel beginning on August 29, 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2005) - An application by Jason Fediuk, a trader with Salman Partners Inc. in Vancouver, BC, to stay proceedings against him was dismissed by an RS Hearing Panel yesterday. At 10 a.m. Pacific on Monday, August 29, 2005, the Hearing Panel will reconvene at the offices of the Reportex Agencies Ltd., Suite 2403, 595 Burrard Street, Vancouver to determine whether Fediuk committed a frontrunning violation when he traded TVX Gold Inc. shares ahead of the client in April 2002. The Hearing Panel will hear two days of evidence before adjourning to September 12, 2005 to hear final arguments. The hearing is open to the public.

In his application, Fediuk challenged RS's jurisdiction to hold the frontrunning case against him on the basis that he never consented to RS's jurisdiction. The Hearing Panel accepted RS's argument that the TSX derives its jurisdiction over Fediuk from the TSE Act which covers both participating members and their employees. The panel also accepted that the Act expressly allowed the TSX to delegate its member discipline authority to RS.

RS alleges that Fediuk committed a frontrunning violation on April 26, 2002 when, with knowledge of a client order to purchase shares of TVX Gold Inc. that on entry could reasonably be expected to affect the market price of this security, he entered a non-client order on a marketplace for the purchase of this security prior to entry of the client order. This is a violation of the Universal Market Integrity Rule 4.1(1)(a). (http://docs.rs.ca/ArticleFile.asp?Instance=100&ID=18D361390A0741ABB6760B0F6152B7A3)

The Notice to Public (http://docs.rs.ca/ArticleFile.asp?Instance=100&ID=265BFF86361241D8A29C59EABBEDCD0C) and Statement of Allegations (http://docs.rs.ca/ArticleFile.asp?Instance=100&ID=F0133080A80B4A6881C7163F9DFB5835) can be found on RS's website.

The Hearing Panel's decision and the terms of any discipline imposed will be published by RS as a Disciplinary Notice and in a news release.

About Market Regulation Services Inc. (RS)

RS is the independent regulation services provider for Canadian equity marketplaces, including TSX, TSX Venture Exchange, Canadian Trading and Quotation System, Bloomberg Tradebook Canada Company, Liquidnet Canada Inc. and Markets Securities Inc. RS is recognized by the securities commissions of Ontario, British Columbia, Alberta and Manitoba and by the Autorite des marches financiers in Quebec to regulate the trading of securities on these marketplaces by participant firms and their trading and sales staff. RS helps protect investors and ensure market integrity by ensuring all equities transactions are executed properly, fairly and in compliance with trading rules.

Contact Information

  • Market Regulation Services Inc.
    Doug Maybee
    Director of Communications & Public Affairs
    416-646-7253 / C: 416-627-3900
    doug.maybee@rs.ca
    www.rs.ca