CIBC World Markets has been fined $150,000 by IIROC for failing to identify repeated market “pinging”.
A regulatory hearing detailed how CIBC World Markets failed to prevent and prevent the entry of any orders by “direct electronic access” clients that “interfered with fair and orderly markets”. Crucially, the conduct by the client was previously the subject of a Gatekeeper report, which identified a trader ID as orders entered, modified and deleted during the pre-open session, which affected
Calculated opening price (COP) of certain securities.
This practice is commonly known as “pinging” the market, whereby orders are entered and removed quickly to determine whether existing orders are market or limit orders, at what level of liquidity exists. and what price may be most beneficial to trade in the market. Open”.