Citi unit fined $78.6M by U.K. regs for trading control failures
By 
Aaron Nicodemus2024-05-22T18:30:00
Two U.K. financial regulators fined a London-based Citigroup subsidiary a total of approximately 61.7 million pounds (U.S. $78.6 million) for control failures related to its trading system.
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) announced the penalties Wednesday against Citigroup Global Markets Ltd. (CGML), an investment firm subsidiary of Citigroup.
In a press release, the FCA said it levied its fine of about £27.8 million (U.S. $35.4 million) because failures in the firm’s systems and controls allowed a trader’s erroneous order to enable $1.4 billion in equities improperly sold on the European market on one day in May 2022. The PRA, which levied a penalty of about £33.9 million (U.S. $43.2 million), said in a press release its investigation into the trading order error found deficiencies in the firm’s trading system and controls from April 2018 to May 2022.
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