Citi fined $79 mln by UK regulators over ‘fat-finger’ failures

By Jerry  Published On May 23, 2024
LONDON, May 22 (Reuters) – UK regulators fined Citigroup (C.N), opens new tab 61.6 million pounds ($78.5 million) for controls failings in its trading operations, one of the biggest sanctions for systems breaches, which in one case saw the Wall Street firm cause a sudden fall in European stocks.
The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), the markets watchdog, both probed and fined Citigroup over the failings that spanned from April 2018 through May 2022, they said in a statement on Wednesday outlining the findings of the investigation.
The bank’s London unit, Citigroup Global Markets Limited (CGML), had a series of failings that “crystallised into trading incidents”, the most striking of which was a mistaken $444 billion order in May 2022.
“Firms involved in trading must have effective controls in place in order to manage the risks involved,” said Sam Woods, CEO of the PRA and the Bank of England’s deputy governor for prudential regulation. “CGML failed to meet the standards we expect in this area, resulting in today’s fine.
Source: REUTER

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