• NOTICE OF DISCIPLINARY ACTION

      • #
      • 12-CH-1203
      • Effective Date
      • 16 October 2012
    • 12-CH-1203

      EXCHANGE DISCIPLINARY ACTION

      CLEARING MEMBER: Cantor Fitzgerald & Co.

      CBOT RULE VIOLATIONS: 

      (legacy) Rule 971.C. Segregation, Secured and Sequestered Requirements (n/k/a Rule 971.E.)

      All clearing members must provide written notice to the Audit Department of a failure to maintain sufficient funds in segregation, secured 30.7 or sequestered accounts. The Audit Department must receive immediate written notification when a clearing member knows or should have known of such failure.

      980. Required Records and Reports

      B. Each clearing member shall maintain an adequate accounting system, internal accounting controls, and procedures for safeguarding customer and firm assets as set forth in CFTC Regulation 1.16(d)(2). This includes, but is not limited to, the following:

      1. Preparation and maintenance of complete and accurate reconciliations for all accounts; and

      2. Resolution of reconciling items in a timely manner.

      FINDINGS: Pursuant to an offer of settlement in which Cantor Fitzgerald & Co. neither admitted nor denied the violations, the Clearing House Risk Committee found that Cantor Fitzgerald & Co. violated the above rules.

      PENALTY: In accordance with the settlement offer, the Committee imposed a $100,000 fine.

      EFFECTIVE DATE: October 16, 2012