The U.S. Securities and Exchange Commission (SEC) has settled with brokerage firm Cantor Fitzgerald & Co., which has admitted to trade reporting deficiencies.
Cantor Fitzgerald agreed to pay US$3.2 million to settle allegations that it provided the SEC with incomplete and inaccurate trading data, which is known as “blue sheet data,” for approximately 35 million trades over five years.
According to the SEC’s order, Cantor Fitzgerald submitted deficient data “largely due to inadequate processes designed to validate the accuracy of its submissions and undetected coding errors.”
The SEC noted that the firm took action to fix its trade reporting issues, including retaining an outside consultant, and adopting new policies and procedures.
Cantor Fitzgerald admitted to the regulator’s findings and agreed to be censured and pay the US$3.2 million penalty.
“The SEC depends on broker-dealers to provide it with complete and accurate trade data. When they fail to meet that obligation, it hinders our ability to detect wrongdoing and protect investors,” said Kelly Gibson, director of the SEC’s Philadelphia office.