Citigroup fined £61.6m over alleged own trade

Citigroup was fined 61.6 million pounds by British regulators on Wednesday after a London employee\’s own trading led to a flash crash in European stocks in 2022

Citigroup was fined 61.6 million pounds by British regulators on Wednesday after a London employee\’s own trading led to a flash crash in European stock markets in 2022.
The British Financial Conduct Authority (FCA) said in a statement that the Wall Street giant\’s system was poorly designed and real-time monitoring was ineffective, leading to incorrect transactions being passed.
Citigroup did not dispute the regulator\’s findings and agreed to settle the charges.
The FCA said the trader originally intended to sell a basket of stocks worth $58 million, but made an input error when entering the order, resulting in the creation of a basket of stocks worth $444 billion.
Citigroup\’s controls did block some trades. But not all.
About $1.4 billion worth of shares were sold on European exchanges before the trader canceled the order.
The FCA said in a statement: Some key controls were missing or defective.
In particular, there are no hard barriers that can completely reject this whole bunch of bad stocks and prevent any of them from entering the market.
The mistake triggered a five-minute sell-off in the OMX Stockholm 30 index and ultimately wreaked havoc on exchanges from Paris to Warsaw, wiping out 300 billion euros at one point.
The FCA fined Citigroup 27.77 million pounds, while the Prudential Regulation Authority fined the bank 33.88 million pounds.

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