FCA Fines Citigroup Global Of GBP 27.77 Mln For Trading System Failures, PRA Imposes GBP 33.89 Mln

(RTTNews) - The Financial Conduct Authority or FCA Wednesday has fined Citigroup Global Markets Ltd. or CGML GBP 27.77 million for failures in systems and controls. FCA said CGML has sold $1.4 billion of equities in European markets when they should not have the permission to do that.

The Prudential Regulation Authority or PRA also imposed a financial penalty of GBP 33.89 million on CGML following its own investigation.

CGML did not dispute the FCA's findings and agreed to settle, which means it has qualified for a 30 percent discount on the proposed fine of GBP 39.67 million.

According to FCA, a CGML trader had intended to sell a basket of equities to the value of $58 million on May 2, 2022. The trader made an inputting error while entering the basket in an order management system. This resulted in a basket to the value of $444 billion being created.

CGML controls blocked $255 billion of the basket progressing, but not the remaining $189 billion which was sent to a trading algorithm.

FCA noted that the firm's real-time monitoring was ineffective.