UK regulators have imposed a combined £62 million fine on Citigroup for inadequate controls in its trading systems. The Financial Conduct Authority (FCA) and the Bank of England’s Prudential Regulation Authority (PRA) conducted investigations into the US bank’s operations.
In May 2022, an experienced Citigroup trader accidentally sold $1.4 billion worth of stocks on European exchanges, intending to sell only $58 million. The bank’s systems blocked $255 billion of the $444 billion order, but $189 billion was sent to its trading platform. The trader eventually canceled the transaction after selling $1.4 billion in stocks.
The regulators reduced the fines by 30% because Citigroup agreed to settle the matter, resulting in a combined fine of £62 million instead of £88 million. Following the incident, Citigroup has taken measures to improve and strengthen its trading system security. The PRA emphasized the importance of effective controls in managing risks involved in trading.