OSC approves $24.5M in settlements with TD, RBC

Banks settle allegations over FX traders sharing confidential info


A panel at the Ontario Securities Commission has approved settlement agreements with TD Bank and Royal Bank of Canada totalling nearly $24.5 million after the lenders’ currency traders shared confidential information in chatrooms to gain a potential advantage in foreign exchange transactions.


As part of a settlement approved today, TD Bank agreed to make a voluntary payment of $9,300,900 to the securities regulator and an additional payment of $800,000 to cover the costs of the OSC’s investigation.


In a separate hearing, RBC agreed to make a voluntary payment of $13,552,000 to the OSC and an additional payment of $800,000 to cover the regulator’s costs as part of its settlement.


As well, internal audit groups at both banks will conduct an audit of its compliance with the FX global code, a set of principles for the foreign exchange market.


The banks agreed as part of the settlements that their currency traders exchanged confidential information, such as the existence of stop loss orders, with traders at other financial institutions over a period between 2011 and 2013.


Both banks also agreed that it did not have a sufficient system of controls and supervision in place in relation to their foreign exchange businesses during that time.


OSC commissioner Grant Vingoe said during both hearings that the banks failed to meet the high standard of conduct expected of a market participant, that potentially put its customers at risk.

© 2018 by Enoch Wealth Inc.