Finra Fines Cantor Fitzgerald for $250,000


Cantor Fitzgerald & Co, a company founded in 1945 and dedicated to providing financial services globally, agreed today to pay a fine of $ 250,000 as part of an agreement with the Financial Industry Regulatory Authority of the United States (FINRA).

May 10, 2021, | AtoZ Markets -Cantor Fitzgerald & Co, a company founded in 1945 and dedicated to providing financial services globally, agreed today to pay a fine of $ 250,000 as part of an agreement with the Financial Industry Regulatory Authority of the United States (FINRA).

The company was indicted for alleged violations of FINRA rules regarding the notification of short interest positions.

Remember that FINRA requires firms to report short interest positions in all customer and proprietary accounts in all equity securities twice a month. All short interest positions must be reported by 6 p.m. Eastern Time on the second business day after the reporting settlement date designated by FINRA.

The most accurate measure of short selling is the data reported by all broker-dealers to FINRA on a bi-weekly basis. These numbers reflect the total number of shares in the security sold short, i.e. the sum of all firm and customer accounts that have short positions.

What Sanction Was Imposed

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The sanction imposed refers in particular to transactions that occurred between January 12, 2018 and July 13, 2018 where the company erroneously reported having short interest positions guarded and already reported by its clearing company, which resulted in duplicate reports. and inaccurate.

Specifically, the report speaks of 25,434 short interest positions that generated a total of 65.71 million shares, while the company should have reported 743 short interest positions, for a total of 10.5 million shares during the period of revision.

It was also reported that Cantor did not establish or maintain a monitoring system designed to achieve compliance with FINRA Rule 4560, and that the short-term interest reports did not include any steps reasonably designed to ensure the accuracy of its short-term interest reports. accounting for and excluding positions guarded and reported by your clearing company.

However, it’s important to note that upon FINRA notification, Cantor’s  revised its reporting procedures.

Likewise, in addition to the $ 250,000 fine, the Cantor Fitzgerald accepted a censor on May 6.

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