TORONTO, April 15, 2026 /CNW/ - On April 15, 2026, the Capital Markets Tribunal approved the Ontario Securities Commission's (OSC) settlement agreement with Liquidnet Canada Inc. (LCI), a marketplace operator, following breaches of National Instrument 21-101 Marketplace Operation (NI 21-101).

LCI operated fixed income and equities alternative trading systems (ATSs) in a manner contrary to the confidentiality requirements. Specifically, certain trade and order information of market participants was visible to some employees of LCI's foreign affiliates who were not authorized under Ontario law to see it. In addition, when the visibility issue on LCI's fixed income ATS first came to light, LCI voluntarily suspended certain trading on the ATS without being as forthcoming with the OSC as it should have been about what led to the suspension.

As part of the settlement agreement, LCI has paid an administrative penalty of $600,000 (CAD) for failures to comply with Ontario securities law, as well as costs of the investigation. LCI will also submit to a review of its practices and procedures by an independent consultant.

 "Marketplaces have a clear obligation to investors to operate fairly and in compliance with the rules," said Bonnie Lysyk, Executive Vice President, Enforcement, Ontario Securities Commission. "The OSC takes breaches of those obligations seriously and will take decisive action where warranted to protect investors and safeguard the integrity of Ontario's capital markets."

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca.

Notes to Editors:

• NI 21‑101 sets out the rules marketplaces, including ATSs must follow to operate in Canada, including requirements designed to ensure fair, transparent, and orderly trading. Compliance with these obligations is central to the OSC's oversight and enforcement of market conduct.

Follow us on X 
Follow us on LinkedIn
Follow us on Bluesky

SOURCE Ontario Securities Commission