Cantor Fitzgerald pulled up over fund segregation
27 November 2012 New York
Image: Shutterstock
Cantor Fitzgerald has been sanctioned $700,000 for allowing customer funds to become under-segregated.
The US Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against the futures commission merchant for failing to maintain sufficient funds in its customer segregation account for a period of three days, for failing to provide the CFTC timely notice of its under-segregation, as required, and for related supervisory failures.
The CFTC order imposes a $700,000 penalty and a cease and desist order on Cantor, and requires the firm to undertake certain improvements to its internal controls to prevent future under-segregation violations and notification failures.
The CFTC order found that, on three consecutive days in January 2012, Cantor failed to maintain adequate segregated customer funds due to an inadvertent transfer of $3 million from its customer segregated funds account, instead of from Cantor’s house account, as intended.
The US Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against the futures commission merchant for failing to maintain sufficient funds in its customer segregation account for a period of three days, for failing to provide the CFTC timely notice of its under-segregation, as required, and for related supervisory failures.
The CFTC order imposes a $700,000 penalty and a cease and desist order on Cantor, and requires the firm to undertake certain improvements to its internal controls to prevent future under-segregation violations and notification failures.
The CFTC order found that, on three consecutive days in January 2012, Cantor failed to maintain adequate segregated customer funds due to an inadvertent transfer of $3 million from its customer segregated funds account, instead of from Cantor’s house account, as intended.
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