SEC fines Cantor Fitzgerald $1.4M over large trader filing lapses

Financial services firm Cantor Fitzgerald agreed to pay a $1.4 million penalty as part of a settlement with the Securities and Exchange Commission (SEC) addressing alleged reporting failures.

The lapses occurred regarding Cantor’s failure to identify and report more than 100 customers as large traders as defined by Rule 13h-1 of the Exchange Act, the SEC alleged in an administrative proceeding published Friday. The regulator also faulted the firm for failing to make required filings on its own behalf as a large trader.

From at least August 2017 until May, Cantor failed to maintain records for persons it had reason to know met the criteria of a large trader, which Rule 13h-1 defines as “market participants that exercise investment discretion and effect transactions in a substantial amount of national market system securities,” the SEC said.