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Cantor Fitzgerald fined $700,000 for customer-fund violation

Nov 26 2012 Tom Polansek, Reuters

Cantor Fitzgerald will pay a $700,000 fine to settle allegations it allowed a shortfall in futures-customer funds just months after the collapse of MF Global left a gaping hole in customers' accounts, regulators said on Wednesday. The Commodity Futures Trading Commission said Cantor Fitzgerald failed to maintain adequate funds in its customer segregated account from Jan. 24 to Jan. 26 due to an "inadvertent transfer" of $3 million from the account, instead of from Cantor's house account. The firm also failed to notify regulators of the shortfall as required. The transfer accounted for more than half of customer assets in segregation at the end of January, according to CFTC data. A spokesperson for Cantor Fitzgerald did not immediately respond to a request for comment. The violations were the latest incidents to rattle confidence in the futures industry after futures brokerages MF Global and Peregrine Financial Group collapsed after misuse of customer funds.

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