Broker-dealer Jesup & Lamont has been ordered to stop making trades, except liquidations, by the Financial Industry Regulatory Authority because of a capital deficiency at its securities subsidiary, Jesup & Lamont Securities.

The publicly-traded company received a notice from Finra  on Friday that it was out of compliance with a Securities and Exchange Commission capital rule.

But in a statement yesterday, Jesup & Lamont said it is taking steps to regain permission to restart transactions. The New York-based firm added that it is seeking to show it has complied with the orders and hopes to resolve the issue soon.

In an attempt to raise capital earlier this year, the firm said it reached an agreement in principle in February to merge with Tri-Artisan Capital Partners, a New York-based merchant bank.

Shares of Jesup & Lamont closed down 21 per cent yesterday at 16 cents. The stock has lost 62 per cent so far this year.

Jesup & Lamont Securities is the second firm in the last three months that Finra said failed to meet net-cap requirements. GunnAllen Financial, an independent broker-dealer with about 400 reps, was told by Finra in March that it was in violation of its net-capital requirements.