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Cantor Fitzgerald to pay $3.2 million to settle charges for deficient blue sheet data

Christian Fernsby ▼ | April 8, 2020
The Securities and Exchange Commission announced that Cantor Fitzgerald has agreed to pay $3.2 million to settle charges for providing the SEC with incomplete and inaccurate securities trading information known as “blue sheet data.”
Cantor Fitzgerald
Cantor   Cantor Fitzgerald
According to the SEC’s order, for almost five years, Cantor Fitzgerald made numerous deficient blue sheet submissions containing missing or inaccurate data, largely due to inadequate processes designed to validate the accuracy of its submissions and undetected coding errors.

Topics: Cantor Fitzgerald

The SEC found that Cantor Fitzgerald submitted missing or incorrect data for approximately 35 million transactions.

Broker-dealers are required to provide this information, which the SEC uses to carry out its enforcement and regulatory obligations, including investigations of insider trading and other fraudulent activity.

The SEC’s orders found that Cantor Fitzgerald willfully violated the broker-dealer books and records and reporting provisions.

The firm admitted the findings in the SEC’s cease-and-desist order and agreed to be censured and pay a penalty of $3.2 million.

The SEC’s order also found that Cantor Fitzgerald engaged in remedial efforts to address the cause of its deficient submissions, including the retention of an outside consultant and the adoption of new policies and procedures for processing blue sheet requests.


 

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