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UK regulators have fined Citigroup a total of £62mn for failures in its trading systems over a four-year period that in one case led to $1.4bn of equities being incorrectly sold.
In announcements on Wednesday morning, the Prudential Regulation Authority fined the bank £33.9mn, while the Financial Conduct Authority imposed a penalty of £27.8mn.
The fines arise from incidents between 2018 and 2022, including an incorrect order for $1.4bn being executed on European exchanges. Citi agreed to settle the case and so qualified for a discount on the fines.
“Firms involved in trading must have effective controls in place in order to manage the risks involved. CGML [Citigroup Global Markets Limited] failed to meet the standards we expect in this area, resulting in today’s fine,” said Sam Woods, chief executive of the PRA.
In a statement, Citi said: “We are pleased to resolve this matter from more than two years ago, which arose from an individual error that was identified and corrected within minutes. We immediately took steps to strengthen our systems and controls, and remain committed to ensuring full regulatory compliance.”
This is a developing story
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