That article makes it incredibly obvious what they
Post# of 72440
Excerpt:
Cantor’s supervisory system, including its written supervisory procedures (WSPs), was not reasonably designed to achieve compliance with the requirements of Reg SHO. Cantor’s use of a predominantly manual system to supervise its compliance with Reg SHO was not reasonable in light of the firm’s business expansion and increased trading activity - from 35 billion shares in 2013 to 79 billion shares in 2014. Also, Cantor’s compliance personnel identified red flags in 2013, 2014 and 2015 indicating that the firm had systemic issues with Reg SHO and that its supervisory systems were not reasonably tailored to its business. While Cantor made some changes, it did not adapt and enhance its supervision to address the deficiencies its personnel identified, commit additional staffing to monitoring its compliance with Reg SHO, or implement WSPs relating to its new lines of business until 2016. Moreover, Cantor’s enhancements to its supervisory systems and procedures were not fully effective. For example, Cantor failed to identify fails-to-deliver in accounts that were not monitored by its supervisory systems.