The Capital Markets Tribunal approved the Ontario Securities Commission’s settlement with Liquidnet Canada Inc. (LCI), a marketplace operator, over breaches of National Instrument 21-101 Marketplace Operation (NI 21-101) relating to confidentiality on its alternative trading systems. LCI operated fixed income and equities alternative trading systems in a manner contrary to confidentiality requirements, with certain trade and order information visible to employees of LCI’s foreign affiliates who were not authorized under Ontario law to access it. When the visibility issue on the fixed income alternative trading system first came to light, LCI voluntarily suspended certain trading but was not as forthcoming with the OSC as it should have been about what led to the suspension. Under the settlement, LCI paid an administrative penalty of CAD 600,000 for failures to comply with Ontario securities law, paid investigation costs, and agreed to an independent consultant review of its practices and procedures.
Ontario Securities Commission 2026-04-15
Ontario Securities Commission settlement penalizes Liquidnet Canada CAD 600,000 for alternative trading system confidentiality breaches
The Capital Markets Tribunal approved a settlement between the Ontario Securities Commission and Liquidnet Canada Inc. over breaches of National Instrument 21-101 relating to confidentiality on its fixed income and equities alternative trading systems. Certain trade and order information was improperly visible to employees of foreign affiliates, and the firm was not sufficiently forthcoming with the regulator when the issue arose. Liquidnet Canada Inc. will pay a CAD 600,000 administrative penalty, cover investigation costs, and retain an independent consultant to review its practices.