Cantor Fitzgerald fined $100K by FINRA over disclosure lapses

Cantor Fitzgerald agreed to pay $100,000 as part of a settlement with the Financial Industry Regulatory Authority (FINRA) regarding alleged disclosure failures about which the firm had previously been warned.

Cantor violated Regulation NMS (National Market System) when it published public quarterly reports on its handling of customers’ orders in securities that contained inaccurate and incomplete information, according to FINRA’s disciplinary action published Thursday. The firm was also faulted for deficiencies in its supervisory procedures.

In January 2020, Cantor published its required NMS report for the fourth quarter of 2019, which “failed to disclose … the material aspects of Cantor’s relationship with one of its specified execution venues, including a description of Cantor’s payment for order flow and profit-sharing relationship with the venue,” according to FINRA.