Journalists with legal and investment publications sought out Washington, D.C., partner Emily Gordy to analyze recent federal and self-regulatory and enforcement actions and regulatory statements affecting the broker-dealer industry.
Law360 quoted Gordy in a March 5 story about a $2 million fine the Financial Industry Regulatory Authority (FINRA) levied against Cantor Fitzgerald & Co. for failing to properly supervise short sales as required by Regulation SHO. The Securities and Exchange Commission’s rule, which was implemented in January 2005, was adopted to curb potentially abusive short-selling — selling securities an investor does not own or has not borrowed.
Gordy, who previously held senior enforcement positions at FINRA and the SEC, told Law360 the regulation is important to both regulators. "The rule is fundamentally designed to ensure that abuses in short-selling are not creating issues in the market," Gordy said in a telephone interview. "You can't bet with other people's money."
Gordy added that large firms “absolutely need a robust technological platform to meet the obligations.”
Gordy also spoke to Investment News for a March 13 story about proposed FINRA rules targeting rogue brokerages. According to the article, FINRA has been under pressure to crack down on firms that hire a large number of brokers who have violated FINRA’s rules. FINRA CEO Robert W. Cook said last year that the regulator would provide more direction on overseeing brokers with a history of misconduct. Gordy said Cook “has made it very clear it’s a concern of his.”
“Clearly, they think they need to go further,” she said.