TITLE: Ontario Securities Commission Settles Enforcement Action with Liquidnet Canada Inc. Over Marketplace Operation Breaches
BODY:
On April 15, 2026, the Capital Markets Tribunal approved a settlement agreement between the Ontario Securities Commission (OSC) and 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 violation of confidentiality requirements under Ontario securities law. Trade and order information of market participants was visible to certain employees of LCI's foreign affiliates who were not authorized under Ontario law to access such information. Additionally, when the visibility issue on LCI's fixed income ATS was identified, LCI voluntarily suspended certain trading on the ATS but failed to provide the OSC with adequate disclosure regarding the circumstances leading to the suspension.
Under the settlement agreement, LCI has paid an administrative penalty of CAD $600,000 for its failures to comply with Ontario securities law and to cover investigation costs. LCI is also required to submit to a review of its practices and procedures conducted by an independent consultant. Bonnie Lysyk, Executive Vice President, Enforcement at the OSC, stated that "marketplaces have a clear obligation to investors to operate fairly and in compliance with the rules," emphasizing that the OSC takes such breaches seriously to protect investors and maintain the integrity of Ontario's capital markets.
NI 21-101 establishes the operational rules for marketplaces, including ATSs, operating in Canada, with requirements designed to ensure fair, transparent, and orderly trading.
**Reference:**
Ontario Securities Commission. (2026, April 15). OSC reaches settlement with Liquidnet Canada Inc. Retrieved from https://www.osc.ca/