FINRA has suspended a Senior Managing Director at Cantor Fitzgerald & Co., Riaz Haidri, for three weeks for disclosing confidential information regarding a customer’s trading strategy and later confirming the customer’s identity to another customer. Mr. Haidri was the co-head of Cantor Fitzgerald’s high yield fixed income trading desk at the time of the alleged conduct. FINRA also fined Mr. $15,000 and ordered him to complete five hours of training.
Cantor Fitzgerald has employed Mr. Haidri since May 2013.
FINRA Letter of Acceptance, Waiver, and Consent No. 2017054288401
FINRA and Mr. Haidri entered into a Letter of Acceptance, Waiver, and Consent No. 201705488401 on March 24, 2021, after FINRA alleged that in August and September 2015, disclosed the trading strategy of a firm customer acquiring a long position in a distressed bond, and later confirmed its identity, to another firm customer that had a short position in the same bond, in violation of FINRA Rule 2010. Specifically, FINRA alleged:
- In 2015, Mr. Haidri was the co-head of Cantor’s high yield fixed income trading desk.
- At this time, the firm’s written supervisory procedures prohibited the disclosure of confidential information, including “customer orders, trades, positions and strategies,” to third parties.
- In June 2015, Mr. Haidri became aware that Cantor Customer A was interested in establishing a strategic position in bonds of a certain company.
- In July 2015, Customer A effected multiple purchases of the bonds through Cantor.
- In August 2015, Haidri disclosed Customer A’s strategy, which was confidential information, to Cantor Customer B, which he knew had a large short position in the bonds.
- Approximately ten days later, Customer B purchased the bonds from Cantor to partially cover its short position.
- In September 2015, Customer B asked Mr. Haidri to confirm the identity of Customer A, which he did.
- Later in September 2015, Customer B purchased the bonds from Cantor on two separate occasions.
By disclosing confidential information regarding a customer’s trading strategy and later confirming its identity to another customer, Mr. Haidri violated FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses or harm arising out of wrongful conduct by brokers and brokerage firms.
Investors who have been harmed should contact Iorio Altamirano LLP toll-free at (855) 430-4010 for a free and confidential review of their legal rights.