People walk past a CitiBank location in Manhattan on March 1, 2024 in New York City.
Spencer Platt | Getty Images
LONDON – British regulators on Wednesday imposed penalties totaling 61.6 million pounds ($79 million) on the U.S. investment bank City for deficiencies in its trading systems and controls.
The fines were imposed by the Prudential Regulation Authority and the Financial Conduct Authority, whose investigation focused on the period between April 1, 2018 and May 31, 2022. Citi was entitled to a 30% penalty reduction after agreeing to a resolution The Reason.
“Firms involved in trading must have effective controls in place to manage the risks involved.” CGML [Citigroup Global Markets Limited] “The standards we expect in this area were not met, resulting in today’s fine,” Sam Woods, deputy governor for prudential regulation and chief executive of the PRA, said in a statement on Wednesday.
Regulators said certain system and control problems persisted during the investigation period and led to trading incidents, such as so-called fat finger trading errors. The main incident highlighted occurred on May 2, 2022, when an experienced trader incorrectly entered an order, resulting in $1.4 billion being “accidentally executed on European exchanges.”
“Deficiencies in CGML’s trade controls contributed to this incident, particularly the lack of certain preventative hard blocks and the inadequate calibration of other controls,” the statement said.
In a statement to CNBC, a Citi spokesperson said the bank was pleased to resolve the matter from more than two years ago, “which was based on an individual error that was identified and corrected within minutes.”
“We have taken immediate action to strengthen our systems and controls and remain committed to ensuring full regulatory compliance,” the spokesperson said.
Source link
2024-05-22 20:04:47
www.cnbc.com
