Administrative sanction against Bloomberg Trading Facility Limited, Bloomberg Trading Facility BV and Bloomberg SEF LLC
MONTREAL, November 30, 2021 / CNW Telbec / – The Administrative Tribunal of Financial Markets (the “FMAT”) has rendered a decision approving a settlement agreement between the Autorité des marchés financiers (the “AMF”) on the one hand and Bloomberg Trading Facility Limited ( “BTFL”), Bloomberg Trading Facility BV (“BV”) and Bloomberg SEF LLC (“BSEF”) on the other hand, thus giving effect to an administrative monetary penalty in the amount of $ 4,000,000 against BTFL, BV and BSEF.
The deal followed a review by the AMF which revealed that BTFL and BV, two foreign companies operating multilateral trading facilities (“MNCs”) for various financial products, including fixed income securities and swaps, had carried out their activities as a stock exchange in Quebec without being recognized as a stock exchange by the AMF. The examination also revealed that BTFL and BV had filed requests for exemption from recognition as an exchange with the AMF that contained inaccurate and incomplete information. BTFL and BV also provided incomplete and inaccurate information regarding the extent of fixed income and derivative transactions carried out by Quebec participants on their MTFs.
The same review revealed that BSEF, a foreign company operating a swap execution facility (“SEF”), had filed quarterly reports that did not accurately and fully disclose derivative transactions on its SEF and therefore did not comply with not the conditions set out in the October 2, 2013 and October 23, 2017 AMF decisions granting it an exemption from recognition on the stock market.
As part of the agreement, BFTL, BSEF and BV acknowledged all the facts and offenses relevant to Quebec law on securities and derivatives. In particular, they recognized that an exchange operates in Quebec if it offers Quebec participants direct access to the exchange. This includes a participant having his head office or a legal address in Quebec and all merchants carrying out transactions on his behalf, regardless of the physical location of the merchants (including non-Quebec branches of Quebec legal entities), as well as any merchant located physically in Quebec which carries out transactions on behalf of any other entity.
In its decision, the FMAT recalls that “[translation] compliance by a national or foreign stock exchange with the requirement (i) to obtain authorization from the AMF to carry on its activities in Quebec and (ii) to comply with the conditions imposed by such authorization is essential to the protection Quebec investors and maintaining the integrity of Quebec as a financial center. “
The administrative monetary penalty to be paid jointly by BTFL, BV and BSEF reflects the demonstrated cooperation and efforts of BTFL, BV and BSEF to address the compliance and oversight deficiencies that led to violations of Quebec securities legislation and drifts.
The AMF recommends that anyone currently doing business on the stock market in Quebec without being recognized as a stock exchange or without having been exempted from recognition on the stock market to contact the AMF without delay.
The Financial Markets Authority is the regulatory and supervisory body for Quebec’s financial sector.
Sylvain Théberge: 514 940-2176
Information Center :
Quebec: 418 525-0337
Montreal: 514 395-0337
Other regions: 1,877 525 0337
SOURCE Financial Markets Authority
Show original content: http://www.newswire.ca/en/releases/archive/November2021/30/c8149.html