Man, it must be tough to make a loonie up there in Canada if a trading firm has to resort to this...
These guys are getting squeezed in a major way. I wouldn't be surprised if they go under. Their offices are empty. I walked into one last year and there were four traders and around 36 empty stations. I repeat...last year! I don't want to imagine what the numbers may be this year.
They started a hedge fund to provide an alternative revenue stream but I don't know how palatable it would be for sophisticated Canadian investors to give their money to traders who make a chiauaua look serene. The hedge fund is still mired in regulatory filings (or so they say).
Since ST pushes over-trading, I think with the arrival of IB into Canada they will probably lose traders who believe a drastic commission cut would offset other benefits they derive from ST.
But still what they are alleged to have done is simply stupid. Not only is the NASD not too happy with them and will probably ask that they disgorge all ill-gotten gains but I somehow don't think Island will have warm & fuzzy feelings for them either. All this for $19k a month? Wow! They must really be desperate.