Jul 14 (Reuters) – The US Securities and Exchange Commission fined Cantor Fitzgerald $1.4 million on Friday for repeatedly failing to identify and report clients who qualified as large traders.
Cantor, a New York-based investment bank and brokerage firm, has not admitted or denied any wrongdoing by agreeing to the civil fine.
Large traders trade at least 2 million shares or $20 million per day, or at least 20 million shares or $200 million per month. They are usually professional investors, or institutional investors such as banks, hedge funds, insurers and mutual funds.
Cantor has tracked and reported no more than 100 major traders over the past six years, according to the regulator.
It also said Cantor repeatedly failed to file forms identifying itself or affiliates as major traders for more than a decade.
The SEC said Cantor improved its practices to ensure compliance, updating its reporting procedures in December 2022 and May 2023.
Cantor did not immediately respond to requests for comment.
The second began demanding more disclosures about major traders in 2011, in order to identify their impact on important market developments more quickly and to take enforcement action where necessary.
The requirement for more disclosure was in part a response to the “flash crash” of May 2010, when the Dow Jones Industrial Average (.DJI) fell nearly 1,000 points in about 10 minutes.
Reporting by Jonathan Stempel in New York; Edited by Chizu Nomiyama
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