Cantor Fitzgerald & Co Fined and Censured by FINRA

Cantor Fitzgerald & Co. (CRD #134, New York, New York)

was censured, fined $65,000 and required to revise its WSPs (Written Supervisory Procedures).

Allegedly, Cantor Fitzgerad & Co. failed to publish immediately a bid or offer that reflected the price and the full size of customer limit orders for over-the-counter (OTC) equity securities, held by Cantor Fitzgerald & Co., that were at a price that would have improved the bid or offer of the firm in such securities.

FINRA's findings stated that Cantor Fitzgerald & Co. failed to report the correct execution time for S1 corporate bond transactions and transactions involving securitized products to the Trade Reporting and Compliance Engine® (TRACE®), failed to report to TRACE S1 corporate bond and agency bond transactions within 15 minutes of the execution time, failed to show the correct execution time on the memoranda of brokerage orders, and failed to report transactions involving securitized products within the time permitted to TRACE.

The findings also stated that the Cantor Fitzgerald & Co.’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to the applicable securities laws and regulations, and FINRA rules, concerning TRACE reporting. Specifically, Cantor Fitzgerald & Co.'s supervisory system did not include, as one of the supervisory steps set forth in the firm›s WSPs, a review reasonably designed to ensure the accuracy of execution times reported to TRACE.

(FINRA Case #2012034096601)

Soreide Law Group, (888) 760-6552 obtained this summary of information from FINRA’s website, listed under “Disciplinary and Other FINRA Actions, January, 2015.” Call for a free consultation with an attorney if you feel your investment losses are due to your broker/dealer or financial advisor's recommendations. We represent clients nationwide before FINRA.