Market Regulation Services Inc.

Market Regulation Services Inc.

October 20, 2005 13:20 ET

Contested Hearing between RS and Northern Securities Inc., Victor Alboini and Christopher Shaule at a Date to be Determined

TORONTO, ONTARIO--(CCNMatthews - Oct. 20, 2005) - At a date to be determined, a contested hearing will be held at RS, 145 King Street West, 9th floor, Toronto to determine whether Northern Securities Inc. (NSI); Victor Alboini, Chairman, President and Chief Executive Officer of NSI; and Christopher Shaule, former Chief Compliance Officer at NSI, contravened the Universal Market Integrity Rules. The hearing will be open to the public. The date of the hearing will be published once it is determined.

Northern Securities Inc.

RS alleges that between January 2003 and August 2005, NSI failed in numerous respects to comply with its trading supervision obligations.

On several occasions between March 2004 and August 2004, NSI made purchases of the shares of Transglobe Corporation and Ontzinc Corporation while these securities were on NSI's grey list, in violation of NSI's own policies and procedures.

On December 22, 2003, NSI conducted an improper off-marketplace trade, and failed to comply with its best price obligation to a client.

On 37 occasions in the period October 2003 to October 2004, NSI failed to properly mark trades to identify them as client or inventory trades, as the case may be.

Victor Alboini, Chairman, President and Chief Executive Officer of NSI RS alleges that between January 2003 and August 2005, Alboini failed in numerous respects to comply with his trading supervision obligations as President and Chief Executive Officer of NSI.

Between April 28, 2003 and August 2005, Alboini, as the sole member of the NSI Board of Directors, failed in numerous respects to comply with the trading supervision obligations of a board of directors.

Between March 2004 and August 2004, Alboini engaged in conduct which resulted in NSI contravening the firm's own policies and procedures.

Christopher Shaule, former Chief Compliance Officer at NSI

RS alleges that between November 2003 and May 2005, Shaule failed to comply with his trading compliance obligations in numerous respects

The Statement of Allegations, which is an Appendix to the Notice of Hearing, is available for viewing online at RS's website.

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 or (416) 627-3900 (Cell)
    doug.maybee@rs.ca
    www.rs.ca