On March 1, 2024, in New York City, people walked past the Citibank branch in Manhattan.
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LONDON – British regulators on Wednesday fined U.S. investment bank Citigroup a total of 61.6 million pounds ($79 million) for failings in its trading systems and controls.
The fines were issued by the Prudential Regulation Authority and the Financial Conduct Authority, whose investigations focus on the period from April 1, 2018 to May 31, 2022. thing.
“Firms involved in trading must have effective controls in place to manage the risks involved. CGML (Citigroup Global Markets Ltd) failed to meet the standards we expect in this area, resulting in today’s fine,” said Deputy Prudential Regulation Authority Chief Sam Woods said. said in a statement Wednesday.
The regulator said certain system and control issues persisted during the investigation and led to trading incidents, such as the so-called “fat finger trading errors.” The main event focused on occurred on May 2, 2022, when an experienced trader mistakenly entered an order, resulting in $1.4 billion being “inadvertently executed on a European exchange.”
“Weaknesses in CGML’s trading controls led to this incident, particularly the lack of certain preventive hard measures and the improper calibration of other controls,” the statement read.
In a statement to CNBC, a Citi spokesperson said the bank is pleased to have resolved the issue, which dates back more than two years. “The issue resulted from an individual error that was discovered and corrected within minutes.”
“We took immediate steps to strengthen our systems and controls and remain committed to ensuring full compliance with regulations,” the spokesperson said.
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