LONDON, Aug 19 – Britain’s Financial Conduct Authority said on Friday it had fined Citigroup Global Markets 12.5 million pounds ($15 million) for failing to properly apply rules aimed at detecting suspicious share transactions. and raw materials.
Banks are required to apply the rules, introduced in 2016 and known as the market abuse regulation, to monitor potential insider trading and market manipulation.
But until January 2018, the international trading arm of US bank Citigroup, based in London, had not identified significant gaps in its provisions, systems and procedures for the surveillance of operations, the British Financial Conduct Authority (FCA) said. its acronym in English) in a statement.
Citigroup Global Markets agreed to settle the case and benefited from a 30% discount, otherwise it would have been fined 18 million pounds, the FCA said.
Citi expressed her delight at putting the matter behind her.
The analysis found “many significant gaps in trade oversight” in areas such as equities, interest rates and commodity trading, the FCA said, adding that keeping markets clean depends on collaboration between banks and the regulator.
“By failing to fully implement the new provisions when required, Citigroup Global Markets did not carry out all of its work in this association, which impacted market integrity and the overall detection of market abuse,” it said in a statement. Mark Steward, FCA Executive Director for Law Enforcement.
During the period covered by the watchdog enforcement action, Citi’s brokerage business earned some £2.6bn in revenue from arranging or executing trades in the markets.