Latest news with #CTPs
Cision Canada
17-07-2025
- Business
- Cision Canada
ASC alleges breach of Alberta securities laws by crypto asset trading platform CatalX CTS Ltd. and its CEO and CFO
CALGARY, AB, July 17, 2025 /CNW/ - The Alberta Securities Commission (ASC) has issued a Notice of Hearing against CatalX CTS Ltd. (operating as Catalyx), Hyuek Jae Park (Park) and Jae Ho Lee (Lee). At the time of the alleged misconduct, Lee was chief financial officer and Park was chief executive officer of Catalyx. The Notice of Hearing alleges that Lee perpetrated a fraud on Catalyx clients and that Catalyx failed to comply with a written undertaking it had given the ASC to permit it to continue operating in Canada while its application for registration as an authorized crypto asset trading platform (CTP) was being reviewed by the Commission. At the time of the alleged misconduct, CTPs operating in Canada were required to sign a pre-registration undertaking in order to continue operations while their application for registration was under review. As part of the undertaking, CTPs were required to comply with terms and conditions to address investor protection concerns. More information about the regulation of CTPs is available on the Canadian Securities Administrators website. According to the Notice of Hearing: Beginning in February 2019, Lee improperly withdrew at least $14,030,000 CAD worth of clients' crypto assets from the Catalyx CTP, and transferred them to accounts he controlled at other CTPs. Lee subsequently returned some crypto assets to the Catalyx CTP, leaving it with a substantial shortfall. Lee also misappropriated clients' fiat currency deposits for unauthorized purposes. By November 24, 2023, Park was aware that Lee perpetrated a fraud on clients of Catalyx, but Catalyx failed to inform the ASC of this material breach of the written undertaking until December 21, 2023. In further breach of the written undertaking, Catalyx failed to establish, maintain and apply policies and procedures to manage and mitigate the risk of an employee misappropriating clients' fiat currency and crypto assets that were meant to be held in trust for clients. These are allegations and have not been proven in a hearing. An appearance to set a date for a hearing will be held on September 15, 2025 in the ASC Hearing Room, located on the 5th floor, 250 – 5 Street S.W., Calgary, Alberta. A copy of the Notice of Hearing can be found on the ASC website. The ASC gratefully acknowledges the assistance of the BC Securities Commission, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and the Financial Market Authority Liechtenstein. The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
Bloomberg
28-01-2025
- Business
- Bloomberg
January Global Regulatory Brief: Trading and markets
SEC adopts amendments to broker-dealer customer protection, net capital rules The U.S. Securities and Exchange Commission ('SEC') adopted amendments to Rule 15c3-3 (the 'customer protection rule') to require certain broker-dealers to perform daily computations of net cash owed to customers and other broker-dealers. The Commission also adopted amendments to Rule 15c3-3 and Rule 15c3-1 (the 'broker-dealer net capital rule') to allow certain broker-dealers that perform daily computations to decrease their customer-related receivables, or 'aggregate debit items,' charge from 3 percent to 2 percent in the computation. Daily computations: The amendments to the customer protection rule will require broker-dealers with 'average total credits' equal to or greater than $500 million to make the relevant customer and proprietary account computations daily. Prior to the amendments, broker-dealers were required to make such computations on a weekly basis. Debit reduction: The amendments to the broker-dealer net capital rule allow broker-dealers performing daily computations – on a required or voluntary basis – to reduce the customer-related receivables charge (i.e., aggregate debit items charge) from 3 percent to 2 percent in the computation. Broker-dealers that choose to voluntarily perform daily computations are required to notify their designated examining authority. Timeline: The amendments will become effective 60 days after the date of publication in the Federal Register. Broker-dealers that exceed the $500 million threshold using each of the 12 filed month-end FOCUS Reports from July 31, 2024, through June 30, 2025, must perform computations daily beginning no later than December 31, 2025. ESMA launch selection procedure for bond Consolidated Tape ESMA launched the selection procedure for the Consolidated Tape Provider (CTP) for bonds. Deadline to submit applications is February 7th. launched The creation of CTPs is one of the core objectives of the MiFIR Review, which aims to enhance market transparency and efficiency by consolidating trade data from various trading venues and APAs into a single and continuous electronic stream. This consolidated view of market activity is expected to promote more efficient price discovery and trading in the EU. Tentative timeline January: ESMA launches selection process July: ESMA to adopt a reasoned decision on the selected applicant (valid for 5 years) From July: Authorization process by ESMA Q1 2026: Bond CT to start operating The selection process of the CTP for equity and ETFs is planned for June. All the documents related to the procedure are available in this EU Commission website. Annex I on the selection criteria provides insights into ESMA's thinking on a number of core issues around the CTPs operations. FCA consult on PISCES The UK Financial Conduct Authority has published its proposed framework for the Private Intermittent Securities and Capital Exchange System (PISCES). This is a new regulated trading platform for private company shares and is intended to enable intermittent trading of private company shares. Important background: The growth in private markets is leading to investor demand for an organized marketplace to buy and sell stakes in private companies. As such, PISCES is a UK Government-sponsored initiative to bring some of the trading infrastructure used in public markets to private companies. Consideration has been given to the importance of protecting existing features of private markets where companies retain control and requirements and appropriate. The vision is to connect existing shareholders with a range of buyers, including institutions and certain sophisticated retail participants. The approach is to build and enhance private market practices rather than using public market standards as a starting point, the 'private-plus mindset'. Market abuse: The regulatory framework for PISCES will differ from other markets. Notably, the UK Market Abuse Regulation (UK MAR) will not directly apply to shares admitted to a PISCES platform. UK MAR would only apply in the limited circumstances where the PISCES share had an impact on the price or value of another financial instrument admitted to trading on a UK (or other in-scope) trading venue. The required core disclosure information will not be comparable to the level of information that investors may get from public companies. Next steps: The consultation is open for written feedback until Feb 17 and the Treasury will issue the final legislation in May 2025. The FCA will then publish final rules. The FCA will provide further information in early 2025 about pre-application engagement opportunities for firms interested in becoming a PISCES operator.
