CIBC World Markets to settle Canada regulator probe

Tue Jun 14, 2011 6:23pm EDT
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(Reuters) - CIBC World Markets has agreed to settle a two-year investigation by Canadian market regulators into a violation of an options-contracts rule, by paying $95,000 in fines and costs.

CIBC World Markets, the investment banking arm of the Canadian Imperial Bank of Commerce, admitted that it did not setup enough internal controls to ensure a particular change in the method to adjust options contracts was implemented on the system it used to monitor client margin requirements.

The Investment Industry Regulatory Organization of Canada (IIROC), which is the self-regulatory group that oversees investment dealers and trading activity on debt and equity markets in Canada, began the investigation in March 2009 into the violation which had occurred a year earlier.

(Reporting by Abhiram Nandakumar in Bangalore)