FINRA imposed a $511,609 fine on Avinesh Shankar and permanently barred Ricardo Cruz from the securities industry, the CFTC reaffirmed its exclusive jurisdiction over prediction markets in a U.S. circuit court filing, and four new broker-dealers registered across 53 total events.
FINRA Fines Avinesh Shankar $511,609
FINRA imposed a $511,609.74 fine on Avinesh Shankar — the largest individual fine recorded in February and one of the most substantial monetary penalties of 2026 so far. Fines exceeding $500,000 against individual registered representatives are rare and typically involve disgorgement of profits from unauthorized trading, outside business activities, or misappropriation. The precise dollar amount — down to the cent — suggests the fine was calculated to match specific ill-gotten gains or client losses.
FINRA Bars Ricardo Cruz
FINRA permanently barred Ricardo Cruz from the securities industry — the fourth industry bar recorded this month. The pace of bars — approximately one per week — reflects FINRA's continued enforcement posture against individuals whose conduct warrants the most severe sanction available. An industry bar prohibits the individual from associating with any FINRA member firm in any capacity, effectively ending their career in the regulated securities industry.
CFTC Asserts Prediction Markets Jurisdiction in Court
The CFTC reaffirmed its exclusive jurisdiction over prediction markets in a U.S. circuit court filing — a significant legal development following the Commission's withdrawal of its event contracts rule proposal earlier this month. The court filing signals that while the CFTC stepped back from rulemaking, it is not ceding regulatory authority to other agencies or to state regulators.
The prediction markets jurisdiction question has broad implications for firms like Kalshi, Polymarket, and other platforms that offer contracts on future events. The CFTC's assertion of exclusive authority means that these platforms must operate within the Commission's regulatory framework, regardless of whether specific rules for event contracts have been finalized.
Four New Broker-Dealers Register
Four new broker-dealer registrations were recorded — the most new firm filings in a single day this month. Three of the four firms are based in Colorado: Axivon Exchange Ltd (CRD 340961) in Denver, Apexium Securities Ltd (CRD 340985) in Parker, and Veriton Investment Inc (CRD 341008) in Denver. Nomad Venture Partners, LLC (CRD 316236) rounds out the new entrants. The Colorado cluster is notable — the state has been attracting fintech and alternative finance companies, and three new BD registrations from the Denver area in a single day reinforces that trend.
20 FOCUS Reports Filed — New February Record
Twenty broker-dealers filed FOCUS Reports, shattering the previous February record of 18 set on February 13. The sustained pace of FOCUS filings in mid-February reflects month-end and quarterly reporting cycles that generate batch submissions. FOCUS data is the primary source for monitoring broker-dealer financial health across the industry.
OCC Approves Nine Actions
The OCC processed nine banking actions: one business combination approval for Associated Bank NA, six branch establishments at JPMorgan Chase, PNC Bank, U.S. Bank, and Valley National Bank, one branch closing at Amarillo National Bank, and one additional action. The OCC's approval of Associated Bank's business combination is particularly noteworthy as a mid-size regional bank merger.
Across the Wire
Six SEC announcements, three RIA graduations, three advisor disclosures, two advisor moves, and two DBA removals were recorded. One Bureau of Industry and Security press release was issued. The day's 53 events represent a return to normal volume following the Presidents' Day weekend lull.
All data sourced from FINRA BrokerCheck, SEC EDGAR, CFTC, OCC, and the Finleet Terminal as of February 17, 2026. Entity profiles are available at terminal.finleet.com.