The SEC ordered Cantor Fitzgerald & Co. to pay a penalty of $3.2 million to settle charges for providing the SEC incomplete and inaccurate securities trading information, known as "blue sheet data."
For almost five years, according to the order, Cantor Fitzgerald made numerous deficient blue sheet submissions containing missing or inaccurate data, largely due to inadequate processes designed to validate the accuracy of its submissions and undetected coding errors. The SEC found that the company submitted missing or incorrect data for about 35 million transactions.
The SEC also found that Cantor Fitzgerald engaged in remedial efforts to address the cause of its deficient submissions, including the retention of an outside consultant and the adoption of new policies and procedures for processing blue sheet requests.
The company admitted the findings in the SEC's cease-and-desist order and agreed to be censured and pay the penalty.