The Central Bank has imposed a €452,790 fine on Dublin-based stockbrokers Cantor Fitzgerald for failing to report suspicious transactions, violating insider trading regulations.
An investigation by the Central Bank identified six instances between September 2017 and May 2022 where the firm’s surveillance system flagged suspicious deals, but the company failed to report them to regulators as required under market abuse regulations. These regulations are designed to prevent insider dealing, unlawful disclosure of inside information, and market manipulation.
In its findings, the Central Bank criticized Cantor Fitzgerald’s actions as “reckless,” stating that the company knew or should have known the risks of failing to submit the required reports. The regulator also found that between March 2017 and June 2023, Cantor failed to consistently escalate suspicious transactions internally, further compounding the breaches.
The Central Bank highlighted that Cantor did not properly document its analysis of whether specific orders and transactions were suspicious. It also noted that the firm’s internal committee responsible for managing suspicious transactions hindered consistent reporting, contributing to the prolonged regulatory breaches. The issue was only fully addressed after the Central Bank intervened.
Cantor Fitzgerald, which operates in Dublin, Cork, and Limerick, has admitted to the breach. The Central Bank initially determined that a fine of €646,840 was appropriate, but this was reduced by 30% to €452,790 as part of a settlement agreement.
The matter is also reportedly under investigation by the gardaí.
Cantor Fitzgerald has been led by Wall Street veteran Howard Lutnick, who recently stepped down as chairman and CEO to take on the role of US Secretary of Commerce in the Trump administration.
In response to the fine, Cantor Fitzgerald issued a statement: “We are pleased to have resolved this matter with the Central Bank of Ireland related to issues which were fully remediated by June 2023.”