Partner Abdulali Jiwaji examines the key takeaways from the £61.6 million trading fines issued against Citigroup by the Financial Conduct Authority and the Prudential Regulation Authority, following a catastrophic so-called fat finger error by one of its bankers. Aggravating factors included previous fines issued, which related to prior systems and controls failings to do with trading activity. Both regulators acknowledged that Citigroup undertook significant remediation in respect of trading controls and booking model controls, including working with an external consultant. Regular reviews of trading controls and booking model controls need to be undertaken, adding hard blocks as necessary, and to consider whether all controls are set at effective levels. [5] FCA Market Conduct Handbook MAR 7A.3.2 and PRA Rulebook on Algorithmic Trading at Rules 2.1 and 2.2.

Source: The Guardian June 26, 2024 10:11 UTC