VSE: Harvey, Approved
Person Disciplined
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Notice to Members #43/99
Vancouver Stock Exchange: Harvey, Approved Person Disciplined
By way of an Offer of Settlement, Brenda Ethel Harvey ("Harvey"), at the
time of the infraction an Approved Person and Registered Vancouver Computerized Trader
("VCT") employed by Georgia Pacific Securities Corp. ("Georgia") has
agreed to the imposition of the following penalties by the Exchange for violation of
Exchange By-Law 5.01(2):
- payment of a fine in the amount of $1,000;
- a requirement to re-write and pass the examination based on the Conduct and Practices
Handbook for Industry and Security Professionals, and
- an assessment of investigative costs in the amount of $250.
By-Law 5.01(2) states in part, that an "Infraction" means any conduct,
proceeding or method of business, which is unbecoming or inconsistent with just and
equitable principles of trade or detrimental to the interests of the Exchange or the
public.
On April 7, 1998, after the close of trading, Harvey and her supervisor and 2 other
persons who all worked on the US Trade Desk (the "US Trade Desk Staff") resigned
from Georgia to set up a US trade desk at Brink Hudson & Lefever Ltd.
("Brink").
The Georgia US open VCT Orders ("the VCT Orders") were kept under Harvey's
VCT identifier. On April 7, 1998, in preparation for Harvey's resignation from Georgia,
Harvey, at the end of the trading session, canceled 74 VCT Orders.
Upon the cancellation of the VCT Orders, the VCT Orders lost any established price/time
priority in VCT.
On April 7, 1998, upon Harvey's departure from Georgia, Harvey removed approximately 12
original Georgia order tickets ("the Order Tickets"). Harvey believed these
clients would transfer their order flow and their accounts to Brink.
Harvey returned the Order Tickets to Georgia after the close of business on April 8,
1998.
Harvey's cancellation of the VCT Orders and the removal of the Order Tickets was
conduct unbecoming and thereby violated Exchange By-Law 5.01(2).
No fault was attributed to the Member Firm.
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